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Poland’s Central Statistical Office (GUS) has released its rapid estimate of inflation for October, revealing a significant drop in the annual inflation rate from 8.2% in September to 6.5%. Economist Andrzej Stefaniak suggests that this decline could pave the way for further reductions in interest rates, which is positive news for the nation’s economy.
According to GUS’s quick estimate, the Consumer Price Index (CPI) for October recorded a year-on-year inflation rate of 6.5%, surpassing most economists’ expectations, who had projected a rate of 6.6%. This reduction reflects the impact of previous measures aimed at curbing inflation, which seem to be yielding favorable results.
Andrzej Stefaniak, an economist, believes that this development signifies the start of a discussion on the extent of future interest rate cuts in Poland. He anticipates that these actions will stimulate economic growth by boosting real incomes and encouraging consumer spending.
Global Deflationary Trends
Stefaniak highlights that recent efforts to combat inflation are aligning with global deflationary trends, and even producer inflation is experiencing deflation. These trends are expected to support the recovery of real incomes in Poland, fostering economic revitalization through increased consumption.