Poland's CPI up to 3.2 percent in 2019 - central bank

Prices of consumer goods and services (CPI) in Poland will go up by 3.2 percent year on year in 2019, while core inflation will reach 2.1 percent, the latest projection by the National Bank of Poland (NBP) shows.

Compared to July's projection, the core inflation forecast remained unchanged, but the CPI projection for 2019 was raised from 2.7 percent.

The NBP's central projection shows GDP growth at 4.8 percent in 2018, 3.6 percent in 2019 and 3.4 percent in 2020. The respective CPI figures are 1.8, 3.2 and 2.9 percent.

Core inflation is to reach 0.8 percent in 2018, 2.1 percent in 2019 and 2.7 percent in 2020.

The increased CPI forecast for 2019 is due to the growth of global commodity prices and the accompanying weakening of the Polish currency versus the US dollar, the NBP said, adding that the developments will have the biggest impact on domestic energy prices, especially in 2019.

In the latest projection, the NBP raised the GDP growth forecast to 4.8 percent in 2018 from 4.6 percent predicted in July, but downgraded the forecast for 2019-2020 due to the predicted rise in energy prices.