June inflation higher than economists expected

Inflation in June rose again and is still above the NBP inflation target. Prices of consumer goods and services in the past [...] https://www.pinterest.com/pin/1085437947660215829/

Inflation rose again in June and is still above the NBP inflation target. Prices of goods and consumer services in the passing month increased on average by as much as 3.3% compared to the same month last year. This is a new estimate by the Central Statistical Office. Inflation in June: a big surprise Economists had expected the CPI inflation to reach 2.8 per cent. However, it turns out that the strong price growth is not behind us. - Inflation is growing not only by fuels, but apparently also by core categories (...) Inflation is probably being pulled additionally by cost factors (covidien subsidies for services rendered), which are becoming more widespread as companies have noticed that they are easily paid for by consumers out of concern for their own safety (...) We are also betting on expensive vacations in the country. It is already clear that there will be no alternative, so the price adjustment could happen as early as June," mBank economists wrote in a morning commentary. Let us recall, however, that the data published today are the so-called quick estimates. This means that the final calculations may still vary, but it is doubtful that they will be a large swing in either direction. The final figures for inflation in June will not be announced until mid-July. It will also be then that we will know which groups of goods and services have increased the most. Food is getting more expensive We already know, however, that the Polish economy continues to be affected by rising food prices (+5.8% y/y) and rising energy prices (+5.1% y/y). Many services, in turn, are getting more expensive, as their contractors seem to have to "compensate" for the lockout. These include surcharges at dentists or hairdressers, who now have to disinfect their work stations after each service. "It is worth adding that inflation in 2020 is calculated according to a weighting system based on the 2019 household budget survey. The previous update was made by the CSO in March 2020. However, the current "pandemic" structure of Poles' spending differs strongly from that of a year ago - spending in some categories (transport, clothing and footwear, recreation and culture, restaurants and hotels) has fallen sharply, while in others (food, health) it has risen sharply." - adds bankier.pl. Tags economy inflation inflation in Poland