Core inflation, which does not take into account food and energy prices, stood at 9.3 percent in July, compared with 9.1 percent a month earlier, the National Bank of Poland reported.
On Tuesday, the NBP released data on inflation base. The index calculated after excluding food and energy prices amounted to 9.3% in July 2022. against 9.1 percent a month earlier.
Core inflation for July
As the NBP informed, in year-on-year relation, inflation net of administered prices (subject to state control) amounted to 15.9%, the same as a month earlier. However, excluding the most volatile prices, it amounted to 11.7%, compared to 11.2%. a month earlier;
In turn, the so-called 15 percent trimmed mean that eliminates the 15% impact. price basket with the lowest and the highest dynamics, amounted to 11.4%, compared to 10.7%. a month earlier.
The CPI in the analyzed period was 15.6%. yyyyy
“Core inflation amounted to 9.3% y / y in July (compared to 9.1% y / y in June). The range of core inflation measures moved only slightly up, to 9.3% -15.9%. (compared to 9.1 percent -15.9 percent in June) “, wrote economists from PKO Research.
Core inflation – what is it?
As the central bank reminds in the press release, “Narodowy Bank Polski calculates four core inflation indices every month, which helps to understand the nature of inflation in Poland”.
“The CPI index shows the average change in the prices of the entire large basket of goods purchased by consumers. When calculating core inflation indicators, price changes in various segments of this basket are analyzed” – we read.
“This allows for better identification of the sources of inflation and more accurate forecasting of its future trends. It also allows to determine to what extent inflation is permanent, and to what extent it is shaped by, for example, short-term price changes caused by unpredictable factors” – he explains.
“The index most frequently used by analysts is the inflation index excluding food and energy prices. It shows trends in the prices of those goods and services on which the monetary policy pursued by the central bank has a relatively large influence” – he emphasizes.
“Energy prices (including fuels) are determined not on the domestic market, but on the world markets, sometimes also under the influence of speculation. Food prices largely depend, among others on the weather and the current situation on the domestic and world agricultural market “- explains the central bank.
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