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CPI in Poland rose to 2.9% YoY from 2.6%, according to flash estimates. Based on our calculations, core inflation has risen to 2.1% YoY, likely pushed up by service prices
The reasons behind July's CPI increase
For the second time in a row, Poland's CPI reading came substantially above the consensus (2.6% YoY), chiefly reflecting food and core prices. Food prices accelerated from 5.7% to 6.8% YoY, despite strong base effects (there was a drought last year).
Our estimates (based on the statistical office’s note) indicate that the