(Bloomberg) -- Polish consumer price growth decelerated for the first time in eight months, boding well for an interest rate cut in early 2025.
Headline inflation eased to 4.6% in November from a year earlier, compared with 5% in October, according to data released on Friday.
Poland’s private consumption, a key growth driver, has faltered in the third quarter, raising doubts over future economic growth and strengthening the case for quicker interest rate cuts, although central bankers remain cautious due to sticky inflation.
The National Bank of Poland has kept the benchmark rate unchanged at 5.75% since October 2023. Policymakers have flagged that the Monetary Policy Council may start discussing rate reductions in March.
The drop in inflation dynamics is “only temporary” and the indicator will rise again in December, as earlier forecast by central bankers, according to economists at Santander Bank Polska SA, led by Piotr Bielski.
--With assistance from Barbara Sladkowska.
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