INFLATION targets are being overshot throughout central and eastern Europe (CEE), mirroring price worries in the UK and elsewhere.
While consumer price index (CPI) inflation remains low compared to the long term average, the CEE average has increased every month since June last year, rising from 3.6 per cent in June to 5.5 per cent last month.
“Higher food and energy prices have played a key role in pushing inflation higher,” commented Gillian Edgeworth of Unicredit Research.
“Nonetheless, core pressures have been showing some signs of increase,” she added.
Interest rate hikes are anticipated throughout the region, in response to core price pressures.
Today the Polish central bank announces its latest decision on interest rates.