Poland’s inflation surged to 3.0% in July, outpacing the central bank’s gradual policy shift and pressuring the zloty.
Poland’s annual inflation accelerated to 3.0% in July from 2.5% in June, driven by a 13.9% monthly jump in fuel prices. Core inflation also rose, with key measures like the 15% trimmed mean holding at 2.8% but others climbing to 3.4% year-on-year.
The National Bank of Poland’s (NBP) slower hawkish pivot contrasts with the sharp inflation rebound, undermining earlier signals from Governor Adam Glapinski about potential rate cuts. Seasonally adjusted month-on-month rates now exceed the central bank’s target.
The mismatch between rising prices and delayed policy action is weighing on the Polish zloty, as markets reassess the NBP’s stance.