Poland recorded its lowest inflation in over a year this August, with consumer prices rising 2.8% year-on-year, according to a flash estimate published Friday by the Central Statistical Office (GUS). The reading came in slightly below economists’ expectations of 2.9% and marks the most favorable result since mid-2024, when inflation briefly dropped to 2.6% before climbing above 4% in subsequent months.

Every month, prices of consumer goods and services declined by 0.1%, extending the downward trend seen in July. This improvement brings inflation closer to the National Bank of Poland’s (NBP) target of 2.5%, which allows for a one percentage point deviation in either direction.

Breaking down the data, food and non-alcoholic beverages rose 4.8% year-on-year, while energy carriers increased 2.3%. The most notable decline came in fuels for private transport, which fell 7.7% compared with August 2024, offering some relief to households facing higher costs in other categories.

The release of the inflation data coincided with the government’s adoption of its draft budget for next year. The plan assumes average annual inflation of around 3% in 2026, positioning Poland among the EU economies with the lowest projected price growth. Prime Minister Donald Tusk underscored the political significance of the figures, declaring that the country was “saying goodbye to PiS high prices” — a reference to the previous government led by Law and Justice (PiS).

“High inflation has been a daily torment for Polish families for years. Today we are finally turning the page,” Tusk said, adding that the government has prepared a budget designed to maintain stability and protect purchasing power.

Economists will now watch whether the slowdown proves durable, particularly as global energy markets remain volatile heading into winter.