Poland's Future Inflation Index down 0.2 pts m/m in April - BIEC researcher
Poland's Future Inflation Index (WPI) has fallen by 0.2 points to 84.4 in April, the economic researcher BIEC said in a report. BIEC pointed out that although the drop was not a significant one, it indicated the possibility of lower inflation readings in the near future.
"This is a small change for the time being, but indicative of the possibility of lower inflation readings in the near future," BIEC assessed, stressing that this positive trend could be counteracted by President Trump's unpredictable policies.
"For it remains to be seen to what extent global manufacturers will be willing to factor uncertainty about customs policy into the prices of their products, and to what extent and for how long this uncertainty will limit investment, which will strengthen the position of local monopolists and push up prices," it added.
The researcher stated that regardless of the uncertainty related to US policies, for the time being, the trend in the Polish economy is for a moderate reduction in inflationary pressure, which should translate into a gradual decline in the CPI.
BIEC pointed out that consumer inflation expectations have been steadily declining for several months. It has also noted a reshuffling between the different subgroups of respondents expecting further price increases.
"There is a decline in the number of respondents expecting prices to rise faster than before, in favour of those expecting prices to rise more slowly than before or to rise at a rate similar to that observed recently. The percentage of answers indicating a fall in prices or their stabilisation has remained unchanged for many months (...)," BIEC reported.
It added that relatively low pressure for price increases is expressed by representatives of manufacturing companies.
ao/