Polish consumer price inflation likely to have remained flat y/y in November

Poland’s consumer price inflation is expected to have remained flat in November. According to a Societe Generale research report, the CPI index is likely to have stayed flat on a year-on-year basis following the 0.2 percent annual deflation recorded in October. On a sequential basis, consumer prices are expected to have accelerated 0.1 percent, consistent with the Central Statistical Office’s (GUS) flash estimate.

Food price acceleration is estimated to have driven the small rise in monthly prices. The lack of change in the November consumer price inflation would be neutral for investors. Moreover, the central bank is unlikely to show any reaction. But the anticipated acceleration in inflation, which will begin from January 2017, might affect market projections that surround potential monetary policy tightening, added Societe Generale.