January inflation data, slightly above market expectations at 1.9% annually, is viewed by PKO BP economists as paving the way for potential NBP rate cuts in March.
January Inflation Data
Preliminary inflation results in January were slightly higher than market expectations at 1.9% annually. Inflation above expectations is mainly the result of higher food price growth.
Conversely, the further decline in inflation was most significantly contributed by deepening fuel price drops at stations (-7.1% annually compared to a 3.1% decrease in the previous month).
PKO BP Economic Assessment
From the NBP perspective, today’s data is bittersweet. Despite slight disappointment, we believe the return to the inflation target is sustainable, which will enable interest rate cuts at the next Monetary Policy Council meeting in March,” – assess PKO BP economists.
