FX.co ★ Poland Economy Rebounds In Q1; Inflation Rises As Estimated

The Polish economy exhibited growth in the first quarter of the year, marking a rebound from the contraction observed in the previous quarter, according to preliminary data released by Statistics Poland on Wednesday.

For the first time in five months, consumer price inflation showed an uptick in April, as confirmed by the final figures.

The gross domestic product (GDP) increased by 0.4 percent on a quarter-on-quarter basis in the first quarter, reversing a 0.1 percent decline from the final quarter of 2023. However, this growth rate fell short of the projected 0.7 percent.

Year-over-year, GDP growth accelerated to 1.9 percent in the March quarter, up from 1.0 percent in the December quarter.

Additional data indicated that seasonally unadjusted GDP grew at an annual rate of 1.3 percent in the first quarter, down from the 1.6 percent growth observed in the preceding three-month period.

A separate report from the statistical office highlighted a rise in consumer price inflation to 2.4 percent in April, up from 2.0 percent in March, aligning with the flash data released on April 30.

The annual price increase for food and non-alcoholic beverages surged to 2.9 percent from 1.9 percent in March, largely driven by the reinstatement of higher VAT rates on food.

Utility costs increased by 1.4 percent, while transport charges decreased by 1.6 percent.

On a month-to-month basis, consumer prices rose by 1.1 percent in April, compared to a 0.2 percent increase in the previous month. The preliminary report had indicated a 1.0 percent rise.