Inflation in Poland Accelerates to 4.3% in August 2024

In August 2024, inflation in Poland increased to 4.3% year-on-year, with notable price rises in energy, water, and education services. This data, released by the Central Statistical Office (CSO), highlights the ongoing pressure on consumer wallets as the prices of goods and services continue to climb.

According to the CSO, services saw the highest price growth, rising by 6.2% year-on-year, while goods increased by 3.6%. These figures slightly exceeded expert predictions, as many had expected inflation to remain at July’s 4.2%. The 0.1 percentage point increase in the Consumer Price Index (CPI) was driven primarily by the energy sector, where prices surged by 10.4% compared to the previous year.

Water and sewage services also experienced significant hikes, increasing by 12.6% and 11.9%, respectively. Educational services became more expensive as well, up by 9%, with restaurants and hotels following close behind, showing a 7.5% rise compared to August 2023.

In the food and beverage sector, prices climbed 4.1% year-on-year, though they dropped slightly by 0.1% from July. Meanwhile, alcohol and tobacco products saw a 4.3% year-on-year rise, with a marginal 0.2% monthly increase.

August also saw steep price hikes in essentials like electricity (+18.5%), gas (+16.6%), and butter (+13.6%). Healthcare costs surged, with doctor visits increasing by 9.2% and hospital services by 10.9%. Hairdressing services and insurance costs each rose by over 8%.

With inflation surpassing the National Bank of Poland’s 2.5% target for another month, economists warn that it could reach 5% in the coming quarters before gradually easing in late 2025. Consumers will continue to feel the impact, particularly in housing, recreation, and dining, as inflation keeps putting pressure on household budgets.