Inflation, i.e. the decline in the value of money over time, seems to be easing. The shock wears off and prices are slowly stabilizing. The CSO confirmed that inflation in August was 2.9%. yoy, but the most important information is that core inflation fell for the first time since December 2018.
According to the Central Statistical Office, the prices of consumer goods and services fell by 0.1% compared to the previous month. in August. The increase in the prices of services amounted to 6.6%. yoy, and goods reached 1.5 percent. yyyyy
“In August this year, compared to the previous month, the prices of consumer goods and services in general had the greatest impact on lower prices of food (by 1.2%) and of clothing and footwear (by 1.5%), which lowered this index respectively by 0.29 percentage points and 0.07 percentage points Higher prices in the field of transport (by 1.9%) and housing (by 0.1%) increased this indicator by 0.16 percentage points and 0, respectively, 03 percentage points ” – we read in the office’s announcement.
Inflation in August 2020 Core inflation reverses the trend
“The most important information, however, is a decline in core inflation (we estimate 4%), which should be officially confirmed by the NBP tomorrow. This is the first fall in core inflation since December 2018“- mBank economists predict.
They add that the division into goods and services suggests stabilization of inflation at a low level in goods and a decrease in inflation in services.
“This is already visible in individual categories. The COVID-19 shock is fading away. Inflation will be well below the NBP target in 2021“- they say.