The year 2014 was characterized by subdued price dynamics, due especially to low inflationary environment in Europe, falling food prices resulting from a rich harvest and public utility price cuts. Household energy prices saw the largest single price decrease (11.7 percent).

In December 2014, consumer prices fell by 0.9 percent year-on-year.

Among the key factors shaping inflation in the last month of the previous year it is worth highlighting the role of falling fuel prices. Core inflation, which excludes public utility price cuts and food prices, was slightly higher by 0.8 percent, but it was still a very modest increase.

The Government’s economic policy has been unequivocally successful in combating inflation: between 2003 and 2010 the inflation rate averaged 5.3 percent per year, while in 2011-2014 it was only 2.8 percent.

Thanks to low inflation, the purchasing power of wages and pensions increased and higher wages in real terms boost consumption and savings.

Source: Ministry for National Economy