Poland’s Inflation Eases in August, Nears Central Bank Target

Posted on August 29, 2025April 10, 2026 by PZC Office

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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.

Implications for Banking and Business

Developments in the Polish banking sector affect businesses operating in the country in several ways. Access to corporate banking services, credit availability, deposit rates, and payment infrastructure are all critical factors for companies — whether established Polish firms or foreign-owned entities entering the market.

For foreign entrepreneurs setting up operations in Poland, choosing the right banking partner is a strategic decision. Major Polish banks including mBank, ING Bank Śląski, Bank Millennium, PKO BP, and Santander Poland offer varying levels of service for international clients, including English-language online banking, multicurrency accounts, and dedicated relationship managers for corporate clients.

The Polish banking market is well-regulated by the KNF (Financial Supervision Authority) and participates in the EU deposit guarantee scheme (BFG — Bank Guarantee Fund), providing deposit protection up to EUR 100,000 per depositor per institution. This regulatory framework provides stability and confidence for businesses maintaining corporate funds in Polish banks.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our VAT and tax advisory, or contact us for a free consultation.

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About Zalewski Consulting

This article was prepared by the Zalewski Consulting editorial team. We provide professional company formation, tax advisory, bank account opening, and legal advisory services in Poland. Contact us for a free consultation.

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