CEE ECONOMY-Polish inflation slows more than expected in April, but core prices a concern

April 28 (Reuters) - Polish headline inflation slowed to a rate of 14.7% year-on-year in April according to preliminary data released on Friday, continuing its retreat faster than expected, but core inflation remained a worry for some experts. Analysts had expected the its rate to drop to 15.0% from 16.1% in March and a high of 18.4% in February, following a surge in prices over the past two years. Economists expect Polish annual inflation to fall to one digit levels by the end of 2023, but the return to the target range to be extended. Polish prices rose 0.7% on the month in April. "Inflation declined again in April due to food and energy prices. We anticipate that the following months will see a continuation of the trend," Polish Economic Institute experts wrote. ING Bank Slaski economist Rafal Benecki said that core inflation barely eased to about 12.2% from 12.3% in March, despite two quarters of lower consumption. "This is very worrying. Companies are probably using inventory bought just in case at high prices and that's why this persistence of core inflation is so high." While the main interest rates across the region remain steady, Hungary's central bank slashed the top of its interest rate corridor on Tuesday, paving the way for rate cuts. Several Polish rate setters meanwhile have signalled that it is too early to discuss cutting interest rates in emerging Europe's largest economy. (Reporting by Patrycja Zaras and Mateusz Rabiega in Gdansk and Karol Badohal in Warsaw; Editing by Toby Chopra)