Polish headline inflation to have confirmed flash estimate of 1.2 pct in November, to average 2.4 pct in 2019

Polish final headline inflation data for the month of November is set to be released this week. According to an Erste Group Research report, inflation rate is likely to have been confirmed at 1.2 percent on a year-on-year basis.

According to the flash estimate, a surprisingly low headline figure was mainly driven by subdued food prices and increased energy prices.

In the months ahead, the recent decline in oil prices is expected to be deflationary. Meanwhile, the planned rise of energy prices for households in 2019 should push inflation up. Overall, inflation in 2019 is likely to be within the target band and averaging 2.4 percent year-on-year, added Erste Group Research.

Meanwhile, the market expects the trade deficit to have come in at EUR 341 million in October.