Inflation in May amounted to 2.9 percent. in annual terms – this is new data from the Central Statistical Office (GUS). Service prices are rising, but goods are not cheaper either.
Inflation, services and goods
It follows that we still have nothing to worry about. Prices of consumer goods and services in May 2020 compared to May 2019 increased by 2.9 percent. The worst thing is when it comes to services. Their prices increased by 7.1 percent, goods – by only 1.4 percent. A month earlier it was 6.5 percent respectively. and 2.3 percent
In April, inflation was 3.4 percent, in March 4.6 percent, and in February 4.7 percent.
On a monthly basis, inflation in May amounted to -0.2 percent. against -0.1 percent in April.
Can we breathe a sigh of relief?
The new result is therefore still higher than the inflation target of the National Bank of Poland. So we shouldn’t feel more confident. In addition, the economic crisis begins in the background, maybe even the worst in nine decades (the Bank of England is of the opinion that even for several hundred years). According to experts, we will only feel its effects.
Let’s look at the prices of specific components that affect inflation. In comparison to May 2019, the prices of food and non-alcoholic drinks increased. Exactly 6.2 percent (food alone by 6.5 percent), alcoholic beverages and tobacco products by 4.5 percent (However, this is the effect of higher excise duty, not strictly market activities), flat use by 7.5 percent, and household equipment by 0.5 percent.
Prices also jumped on the health market (5.5%), communications (3.2%), recreation and culture (2%), education (4.8%) as well as restaurants and hotels (6%). In turn, clothing and footwear (-4.2%) and transport (-12.8%) are cheaper. However, this could have been caused by declines in fuel prices.
– Compared to the same month of the previous year, higher food prices (by 6.5 per cent) and in terms of housing (by 5.8 per cent) increased this indicator by 1.50 pp, respectively. and 1.40 pp Lower prices in the scope of transport (by 12.8 per cent) as well as clothing and footwear (by 4.2 per cent) decreased the indicator by 1.29 pp, respectively. and 0.21 pp – we read further in the new CSO report.