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Notes from Poland is run by a small editorial team<\/a> and is published by an independent, non-profit foundation that is funded through donations from our readers. We cannot do what we do without your support.<\/p>\n Poland\u2019s core inflation \u2013 a measure that excludes the most volatile categories, such as food and fuel \u2013 slowed to 3% year-on-year in October, its lowest level since 2019, according to new data from the National Bank of Poland (NBP).<\/p>\n The rate was down from 3.2% in September and 4.1% a year earlier, strengthening expectations that the central bank may continue cutting interest rates. Core inflation previously peaked at over 12% in 2023, amid the fallout from the pandemic and Russia\u2019s full-scale invasion of Ukraine.<\/p>\n Analysts focus closely on core inflation because it provides a clearer picture of how well the central bank\u2019s monetary policy is working than the broader headline interest rate, known as the consumer price index (CPI).<\/p>\n As the National Bank of Poland (NBP) explains, energy and fuel prices \u201care determined not on the domestic market but on global markets, sometimes also influenced by speculation\u201d, while \u201cfood prices are largely dependent on factors such as weather and the current situation on the domestic and global agricultural markets\u201d.<\/p>\n Core inflation, by excluding such items, \u201cshows price trends for goods and services that are relatively heavily influenced by the central bank\u2019s monetary policy\u201d, notes the central bank.<\/p>\n \u00a0<\/p>\n The drop in the core inflation has been broadly tracking the fall in the headline inflation CPI rate<\/a>, which stood at 2.8% in October.<\/p>\n Both indicators began accelerating in 2021, driven by supply-chain disruptions and a surge in post-lockdown demand. Inflation climbed further in 2022 after Russia\u2019s full-scale invasion of Ukraine sent global energy prices higher.<\/p>\n CPI inflation peaked at 18.4% in February 2023, while core inflation reached a high of 12.3% the following month. Both have been easing steadily since then. As inflation receded, the central bank cut interest rates<\/a> from a two-decade high of 6.75% in 2022\u20132023 to 4.25% this month.<\/p>\n Poland\u2019s central bank has cut its benchmark interest rate by 25 basis points to 4.5%, with the bank’s Monetary Policy Council citing “improvement in the inflation outlook”.<\/p>\n It is the fourth time since May that the rate has been cut, amid slowing inflation pic.twitter.com\/s2puk5XbP7<\/a><\/p>\n \u2014 Notes from Poland \ud83c\uddf5\ud83c\uddf1 (@notesfrompoland) October 8, 2025<\/a><\/p>\n Although analysts are divided on the timing of the next rate cut, ING Bank \u015al\u0105ski economists believe that the slowdown in inflation \u201ccould translate into another 25-basis point interest rate cut in December\u201d.<\/p>\n \u201cThe decline in core inflation and the slowdown in services inflation in October confirm the continued disinflationary trends in the Polish economy,\u201d they wrote, commenting on the data.<\/p>\n Main image credit: Erik Mclean<\/a>\/Unsplash<\/a><\/p>\n Alicja Ptak is senior editor at Notes from Poland and a multimedia journalist. She previously worked for Reuters.<\/p>\n \t\t\t\t\t![\"\"](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/11\/core.jpg\")
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Notes from Poland is run by a small editorial team<\/a> and published by an independent, non-profit foundation that is funded through donations from our readers. We cannot do what we do without your support.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/10\/Alicja_Ptak_Square.jpeg\")
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