Inflation in Poland stood at 2.8 percent in year-on-year terms in February, the country’s Central Statistical Office (GUS) announced on Friday. The price growth rate in Poland has therefore dropped exceptionally significantly, considering the fact that the consumer price index (CPI) stood at 6.2% in December 2023. 

Thanks to falling inflation and high interest rates, the Polish currency (Zloty) has become desirable among investors around the world. Photo by Fz/Pixabay

According to data from statistics office, inflation stood at 3.7% year-on-year in January and at 2.8% in February 2024. This is a better result than analysts expected. For the first time since March 2021, inflation in Poland was within the permissible fluctuation band around the 2.5 percent target of the National Bank of Poland (NBP).

According to the Central Statistical Office, clothing and footwear were 2.6% more expensive than in February 2023. The costs of furnishing and running a household increased by 4%. Health prices increased by 4.5%, communications by 3.5%, education by as much as 9.2%, and price lists in restaurants and hotels were increased by 8.9%. In February 2024, on average, 6.7% more was paid for "other goods and services" than a year ago. Compared to January 2024, the Central Statistical Office recorded an increase in the consumer goods price index by 0.3% after an increase of 0.4% a month earlier.

At the same time, experts point out that the fight against inflation in Poland is not over yet. The return of a higher VAT rate on food products from April 1 will push the CPI up again, and another impulse for price increases will be the unfreezing of energy and gas prices from July 1 this year.