NBP: core inflation in April at 12.2% year on year

The National Bank of Poland (NBP) on Tuesday (May 16) released data on core inflation in Apri 2023. According to the central bank, after excluding administered prices (that is those controlled by the state - edit.), inflation stood at 14% against 15.7% in the previous month. After excluding the most volatile prices, inflation in April was at 15.3% against 16% in March 2023.

The so-called 15% trimmed mean, which eliminates the influence of 15% of the most and least-valued baskets, amounted to 14.3% versus 15.5% in March. Core inflation, after excluding prices of food and energy, was at 12.2% against 12.3% the previous month.

"Narodowy Bank Polski computes the four core inflation indices on a monthly basis to highlight the nature of inflation developments in Poland. The CPI shows average price movement across the whole broad basket of consumer goods. When calculating core inflation indices, price changes in various segments of the basket are analysed," Poland's central bank said in a statement released on Tuesday (May 16).

"Thus, sources of inflation can be identified more precisely, and future trends forecast more accurately. This also helps to find to what degree inflation is permanent and to what extent it is determined, for example, by price changes of a short duration triggered by incidental factors," the bakn added.

"The core inflation measure most frequently used by analysts is inflation net of food and energy prices. It captures trends in prices of the prices of those goods and services which are fairly responsive to the central bank’s monetary policy. On the other hand, energy prices (including fuel prices) are not set domestically, but determined in the global markets, sometimes as a result of speculation. Food prices are largely dependent on, among other things, the weather and conditions prevailing in the domestic and global agricultural market."