Poland's Inflation Rises Amid Energy Price Surge Due to Iran Conflict

Poland's inflation rate has increased as energy prices soar following the conflict in Iran, according to Jin10. Preliminary data released on Tuesday shows that Poland's Consumer Price Index (CPI) rose by 3% year-on-year in March, marking the highest level since July last year and surpassing February's 2.1%. In response to the conflict, Poland's central bank had aggressively cut its benchmark interest rate by 25 basis points to 3.75% on March 4, shortly after the U.S.-Israeli attack on Iran in late February. However, the latest inflation data is expected to prompt the central bank to adopt a more cautious stance. Last week, Polish Prime Minister Donald Tusk announced a plan to reduce the value-added tax and excise tax on soaring oil prices and impose a cap on retail prices, which will be set daily based on wholesale levels.