Poland Jan CPI grows 0.2 pct mth-on-mth, 0.7 pct yr-on-yr

Poland Jan CPI grows 0.2 pct mth-on-mth, 0.7 pct yr-on-yr - Forbes.com

Poland's consumer price index grew 0.2 pct in January from December and 0.7 pct year-on-year, the Puls Biznesu news service reported, adding that some economists now expect the Monetary Policy Council to cut interest rates.

Economists had predicted annual growth of 0.9 pct, it said.

'This is a very good news, partly due to strong zloty, partly due to the fact that growing oil prices did not cause increases for goods and services,' Maciej Reluga, Bank Zachodni WBK's chief economist, commented.

According to preliminary data published by the central statistics office GUS, transport prices fell 1.7 pct, while fuel prices decreased 'substantially'. Food prices rose 0.4 pct month-on-month.

Employment rose 2.6 pct and remuneration by 3.6 pct year-on-year, which some economists believe may lead to growing consumption.

'I believe that the MPC will lower interest rates by 25 base points in February,' a BZ WBK economist said.

Jacek Wisniewski, Raiffeisen Bank chief economist, did not agree.

'It is too early for a cut,' he said. 'I believe the MPC will withhold with its decision until the February data is published. Then, we will see how strong the changes in the labour market were.'

He added that the chances of an interest rate cut in March were growing, however.