Inflation hits 4% in Poland as fuel prices surge
Fuel costs jump 36.1%, pushing inflation above the central bank's target range for the first time since June 2025.
Poland's inflation rate surged to 4.0% in September, marking a notable increase from the previous 3.4% monthly rate. This rise is primarily attributed to the surge in fuel prices, exacerbated by the ongoing conflict in the Middle East and the cessation of government subsidies. The National Bank of Poland (NBP) has set an inflation target of 2.5%, with a permissible range of plus or minus one percentage point.
In light of this, an interest rate hike by the NBP appears increasingly probable. The preliminary figures from Statistics Poland (GUS) indicate a 4% rise in prices compared to the previous year, the fastest rate since June 2025. Monthly inflation saw a 0.7% increase from August. The main driver of this inflation is the price of fuel for private vehicles, which skyrocketed by 36.1% year-on-year and 9.2% from the prior month.
Energy prices, including electricity, gas, and other fuels, also experienced a 4.9% increase year-on-year and 0.9% month-on-month. Despite these conditions, food and non-alcoholic beverage prices showed a slight decline of 0.5% from a year earlier, although they still increased by 0.1% from August. The government has faced criticism from opposition figures and President Karol Nawrocki for not reintroducing subsidies, as Nawrocki has opposed a proposed windfall tax on fuel companies, making it difficult to sustain the measures.
Written by urgent.news from Notes from Poland's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
