NBP: core inflation in August down to 10.0% y/y compared to 10.6% July

According to the NBP data on core inflation indices in August 2023, inflation in year-on-year terms:

The Consumer Price Index (CPI) in the same period stood at 10.1% y/y.

The National Bank of Poland said it "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. 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 cantral bank said in a press release.

"The core inflation measure most frequently used by analysts is inflation net of food and energy prices. It captures trends in prices of those prices of 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," the NBP explained.