Poland’s core inflation measure rose in March from the previous month, when it was unchanged, figures from the National Bank of Poland showed Thursday.
The consumer price index excluding food and energy prices climbed 0.1 percent from February, which was slightly less than the 0.2 percent expected by economists. In February, the index remained stable.
Year-on-year, the core CPI rose 0.2 percent in March, which was the slowest rate in six months. Economists had expected the rate to ease to 0.3 percent from 0.4 percent in February.
Data released on Wednesday by the country’s statistical agency showed that consumer prices fell 1.5 percent annually in March, which was more severe than the 1.3 percent fall predicted by economists. Prices, however, rose 0.2 percent from February, broadly in line with economists’ predictions.
The central bank held its interest rates steady at a record low on Wednesday after reducing it in the previous month. Deflation continues amid the lack of demand pressure in the economy as well as moderate wage growth, and inflation expectations continue to be very low, the bank said.
The bank expects the first quarter economic growth to be better than the expansion in the final three months of last year. Growth continues to be driven by domestic demand amid improving labor market situation, the NBP said.
Policymakers expect price growth to remain negative in the coming quarters, mainly due to the previously observed sharp fall in commodity prices. They also noted that the interest rate cut in March along with other economic factors reduce the risk of inflation remaining below the target in the medium term.
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