(Bloomberg) -- Polish consumer prices accelerated for the seventh month running in October, cementing expectations that any interest rate cuts won’t come before next year.
Inflation rose to 5% from a year earlier, compared with 4.9% in September, according to preliminary data released on Thursday. The data matched the median forecast in a Bloomberg survey of 21 economists.
Price growth in Poland has accelerated in recent months after touching the policymakers’ target range at the start of the year, fueled by curtailed energy subsidies and a higher tax rate on food.
The rebound in consumer prices had been expected by central bankers, who opted to put rate cuts on hold until 2025. The government’s announcement this week that the budget deficit will widen this year may add to rate-setters’ arguments to delay monetary easing.
The central bank has kept the benchmark rate unchanged at 5.75% since October 2023. The next rate decision, accompanied by the release of fresh inflation and growth forecasts, is scheduled next week.
--With assistance from Chris Reiter.
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