Central European Daily

August inflation data, released in Poland yesterday, brought markets no surprise. Consumer prices dropped by 0.4 % compared to the previous month, which corresponds to the annual fall of 0.3 %. The outcome was in line with both our and markets´ expectations. Regarding the structure, the most unanticipated component was a 1.3 % m/m growth in communication prices, which, however, had only limited impact on overall headline inflation (because of its small weight in the consumers’ basket). August inflation data did not change our prediction concerning two subsequent official interest rates cuts, each by 25 bps, to be delivered by the NBP in October and November.