Polish Inflation Returns to Target, Boding Well for Rate Cuts

Poland’s inflation rate returned to the central bank’s target for the first time in over a year, fueling discussion about further interest rate reductions, possibly as soon as in September.

The consumer price index grew 3.1% in July from a year ago, compared with a 2.8% median forecast in a Bloomberg survey of economists. Inflation stood at 4.1% in June and last met the monetary authority’s goal of 2.5%, plus or minus 1 percentage point, in June 2024.