Poland’s annual inflation climbed to 3.0% in July, driven by fuel price hikes, while core inflation remained subdued at 3.1%.
Poland’s consumer price index rose to 3.0% year-on-year in July from 2.5% in June, primarily due to a 15.8% month-on-month surge in fuel prices. The increase followed the reinstatement of a 23% VAT rate on fuel and the removal of a price cap, alongside higher global oil costs after the US-Iran MoU collapse.
Fuel inflation accelerated to 7.0% YoY from 1.3% in June, contributing 0.5-0.6 percentage points to the headline CPI. Meanwhile, food price inflation continued to decline, and housing energy costs eased slightly, offsetting some of the fuel-driven pressure.
Core inflation, excluding food and energy, edged up by 0.1 percentage point to 3.1% YoY, but broader price pressures remained muted. The central bank’s inflation target remains within reach as non-fuel components show limited upward momentum.