Poland’s Central Statistical Office (GUS) reported a 4.9% year-on-year (YoY) increase in consumer goods and services prices in September 2024. Compared to August, the month-on-month (MoM) growth was 0.1%. Analysts had anticipated this outcome, highlighting energy price adjustments as a key factor behind the inflationary trend.
Energy Prices and Core Inflation Impact
Dawid Sułkowski from the Polish Economic Institute noted that energy price liberalization significantly influenced inflation. Fuel prices, on the other hand, dropped by 3.4% MoM, helping ease some pressure. Core inflation climbed from 3.7% to 4.4%, driven partly by statistical factors, including the expiration of free prescription drugs introduced in 2023.
The persistent rise in service prices, which jumped by 6.2% YoY in August, remains a major concern. Sułkowski attributed this trend to a surge in wage growth, with national wages increasing by 14% YoY since the start of 2024. These wage hikes are expected to complicate efforts to slow service inflation.