Poland's August Inflation Slows to 2.8%, Triggering Expectations for Central Bank Rate Cut
Poland's annual inflation rate dropped to 2.8% in August 2026, its lowest level in over a year, driven largely by falling fuel prices. The figure suggests the central bank may cut its key interest rate for a third time this year.
According to a flash estimate released by Poland's state statistics agency (GUS), Poland's annual inflation rate has slowed to 2.8% in August, its lowest level in over a year. The reading came in just below the 2.9% forecast, and was down from 3.1% in July.
What's Driving the Slowdown
The inflation slowdown was driven in particular by fuel prices, which were down 7.7% compared to last August. Beyond fuel, the growth in food and energy prices, meanwhile, eased slightly to 4.8% year-on-year and 2.3% year-on-year respectively in August.
On a month-to-month basis, prices declined by 0.1% from July to August, a rare monthly contraction.
According to analysts, the reading suggests it is likely that Poland's central bank will cut its key interest rate for the third time this year during its rate-setting meeting next week. This matters for anyone with variable-rate mortgages or savings accounts, as lower central bank rates typically lead to lower WIBOR benchmarks and reduced borrowing costs.
If you hold a variable-rate mortgage or are planning to take one, lower inflation and falling rates mean your monthly payments could decrease in the coming months. Monitor the National Bank of Poland's (NBP) announcements closely.
Sources
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