Poland’s Central Statistical Office published a few days ago that inflation (as measured by the Consumer Price Index – CPI) rose for the fourth month in a row. Average prices for consumer goods and services rose by 4.2 percent in July. Year-on-year. Tuesday Acceleration in price increases confirmed by Eurostatbut HICP inflation rate (Harmonized Consumer Price Index) turned out to be slightly lower – it reached 4 operations.
This slight difference in calculations is due to the different methodology for determining inflation. In short, it is about the composition of the basket of goods and services, the price changes of which are taken into account by the Central Statistical Office and Eurostat. Regardless of their assessment, there is no doubt that the latter publication has a very strong advantage – the HICP index allows you to compare price changes in different countries.
Unfortunately Poland is the worst in terms of inflation growth. A month ago it was 2.9 percent. It increased by 1.1 percentage points. Right behind us are Estonia and Italy, where the index rose by 0.7 percentage points during the month.
On average in the European Union, the annual inflation rate rose by 0.1 percentage points over the past month. Up to 2.8 percent
The acceleration of price growth in Poland has led to… In terms of the HICP index itself, we are back at the top of the countries with the highest prices.After June we were in 10th place in the EU, and after July we found ourselves just behind the podium. Romania is at the highest level (inflation at 5.8%), followed by Belgium (5.4%) and Hungary (4.1%).
Poland off the podium in the ranking of EU countries with the highest inflation rate (HICP)
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Eurostat
The main reason for the jump in inflation in Poland is the freezing of electricity, gas and heating prices for households.The price lists for services are rising almost twice as fast as the price lists for goods.
The biggest impact on CPI inflation was higher housing prices compared to June, with the impact of energy price increases being felt. At the same time, food prices fell slightly, and clothing and footwear prices became slightly more expensive.
See also: What’s next with inflation in Poland?
Similar mechanisms can be seen in the euro area. Services made the largest contribution to annual inflation (+1.8 percentage points), followed by food, alcohol and tobacco (+0.45 percentage points). The non-energy industrial goods index rose by 0.19 percentage points, and energy by 0.12 percentage points.
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