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)
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