Feb 15 (Reuters) - Polish headline inflation climbed to
a lower-than-expected rate of 17.2% year-on-year in January,
staying under a high seen in October, as the central bank
maintains stable interest rates while waiting for price growth
to begin easing.
Following sharp hiking cycles, policymakers around central
Europe have shifted to a wait-and-see mode on rates, even as
major central banks such as the U.S. Federal Reserve and the
European Central Bank are now in tightening mode.
Poland's central bank expects inflation to pick up in the
first quarter before it starts falling back into single digits
later this year.
Bank Governor Adam Glapinski last week said it was too early
to discuss potential cuts to the main policy rate, which stands
at 6.75% after a series of hikes from 0.10% in 2021-22.
The Polish Economic Institute said that while a peak in
inflation may be lower than expected, inflationary pressures
remained.
"We still expect inflation to average 13% in 2023," it said
in a comment. "Lower price growth will now be offset by a slower
decline in core inflation in Q2 and Q3."
Inflation around central Europe has picked up to start 2023,
with utility bills resetting in some countries and companies
carrying out repricing activities.
Hungary reported higher-than-expected annual inflation of
25.7% in January, while Czech inflation accelerated to 17.5%.
Price growth has been stronger in the European Union's
emerging east, where labour markets are stronger and wage growth
is a concern for central banks, keeping the chance of rate hikes
still on the table in most cases.
(Reporting by Jason Hovet in Prague and Alan Charlish in
Warsaw; Editing by Shounak Dasgupta)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.