NBP: core inflation in November down to 7.3% y/y

The National Bank of Poland (NBP) on Monday published data on core inflation indices in November 2023.

"In November 2023, inflation net of food and energy prices amounted to 7.3% y/y. In the period under analysis, the Consumer Price Index (CPI) stood at 6.6% y/y" - the NBP announced on Monday.

In October 2023, inflation net of food and energy prices stood at 8.0% y/y.

In year-on-year terms, inflation in November 2023:

The National Bank of Poland said at its website that 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 movements 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 NBP explained.

"The core inflation measure most frequently used by analysts in inflation targeting is inflation net of food and energy prices. It captures trends in the prices of those goods and services which are fairly responsive to the central bank’s monetary policy," the central bank said.

"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."