16.4 percent – this is how much inflation was in Poland in October this year. according to the latest data published by Eurostat. The reading differs from the number because both examined baskets of goods and services differ from each other (mainly in terms of the proportion of specific goods and services, and also in terms of their detailed composition).
The Eurostat methodology has the advantage that it is the same for all EU countries, so it allows you to compare inflation between them. Although in recent months it has been more difficult, because different “anti-inflation” solutions have been implemented in individual countries, which affect price indices with different scales.
In any case, Polish inflation is 16.4 percent. this is a higher reading than a month ago (15.7%). In general – this is the highest reading since March 1997, which is almost 26 years.
On a month-on-month basis, inflation in Poland amounted to 1.6 percent.
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Inflation in the EU and the euro zone is the highest in history
Polish inflation is well above the EU average. This in October amounted to 11.5 percent, which was, however, a much higher result than in September (10.9 percent) and in general, another record in the history of readings.
Inflation in the euro zone also broke another record in October. Eurostat reported on Thursday that it amounted to 10.6 percent. – It was also the first ever double-digit inflation reading in the euro area (in September it amounted to 9.9 percent).
However, the Polish inflation reading is not the highest in the EU. In five countries, the price growth rate in October exceeded the Polish level 16.4 percent, and in four of them even a symbolic ceiling of 20 percent. This the Baltic countries: Estonia (22.5%), Lithuania (22.1%) and Latvia (21.7%), with Hungary (21.9%) among them. The Netherlands also has higher inflation than Poland (16.8%). Compared to the data from September, we overtook the Czechs – then they had higher inflation than Poland, now the reading was higher for us.
The lowest inflation in the EU was recorded in September in France (7.1%), Spain (7.3%) and Malta (7.4%).
Good data for Poland
Eurostat data are poor for Poland. It’s not even that inflation has increased again (although it has fallen in many countries, eg in Bulgaria, the Czech Republic, Estonia, Spain, the Netherlands, Lithuania, Latvia and Cyprus), but that it has increased quite clearly. On a month-to-month basis (ie compared to September this year), inflation in Poland amounted to 1.6 percent. and was lower only than in Italy (3.8%), Belgium (2.7%) and Hungary (2.1%).
In addition, according to the data of the Central Statistical Office, inflation excluding tax changes (i.e. if there were no VAT reductions under the anti-inflation shield) amounted to 19.4 percent in October in Poland, which is much closer to the European highs (22.4 percent in Estonia).
There is also no denying that Poland is at the forefront of the EU when it comes to core inflation, i.e. excluding energy and food prices. As these prices are usually characterized by the greatest volatility, being the most susceptible to supply shocks, after excluding them, the price processes taking place in the economy in the long run are better visible. It turns out that in October, according to Eurostat data, core inflation amounted to 11.7 percent. Among the EU countries, the highest – 14 percent. – had the Czech Republic and Hungary, Estonia and Lithuania still higher than Poland (13 and 12.2 percent respectively).
In the Eurozone, energy prices are the biggest driver of inflation
Eurostat also released details of 10.7% inflation in the eurozone on Thursday. Of course, the strongest year-on-year increase was recorded in energy prices, which increased by as much as 41.5 percent. Food, alcohol and tobacco products increased by nearly 13.1% over the year.
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Source: Gazeta
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