Poland's core inflation in November 2024 rose to 4.3%, up from 4.1% in October, according to the National Bank of Poland (NBP).
The NBP provided detailed data on inflation for November 2024, highlighting several key figures:
- excluding administered prices (those controlled by the government), inflation stood at 3.2%, down from 3.5% in October;
- excluding the most volatile prices, inflation remained steady at 5.3%, the same as the previous month;
- excluding food and energy prices, inflation increased to 4.3%, from 4.1% in October;
- the so-called "15% trimmed mean," which eliminates the effects of the 15% of prices with the highest and lowest price changes, stood at 4.4%, down from 4.5% in the previous month.
What is core inflation?
The NBP explained that it calculates four core inflation indicators each month to help understand the underlying trends in inflation in Poland. The Consumer Price Index (CPI) shows the average change in prices across a broad basket of goods bought by consumers. In calculating core inflation measures, price changes in various segments of the CPI basket are analyzed.
This allows for better identification of inflation sources and more accurate predictions of future trends. It also helps determine the extent to which inflation is driven by persistent factors, versus short-term price changes caused by unpredictable events.
The most commonly used measure by analysts is the inflation rate excluding food and energy prices. According to the NBP, this indicator reflects the price trends of goods and services that are more directly influenced by the central bank's monetary policy.
Energy prices (including fuels) are largely determined on global markets, sometimes influenced by speculative factors. Food prices are mainly affected by weather conditions and both domestic and international agricultural markets.
Źródło: TVN24 News in English, PAP
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