Dip in Polish inflation takes pressure off NBP

Poland has become the latest country in the region to report slower than expected inflation for June. Once again, the sharp drop in food prices appears to have been caused by one-off factors relating to the outbreak of e.coli earlier this summer. But even so, there is little evidence of price pressures elsewhere in the wider economy. This adds weight to our view that interest rates have peaked and will now stay on hold for a long time.