Inflation fell in October. The minister indicated the reason

Inflation lower than in September

According to the results of the Central Statistical Office's flash estimate published on Friday, CPI inflation in October amounted to 3.5%. year to year. A month earlier it was 4.1 percent. on an annual basis. Andrzej Domański, Minister of Finance and Economy, commented on the results of the Central Statistical Office. In an entry published on the platform, X drew attention to the impact of fuel price reductions.

"The CPN package in action. Inflation dropped from 4.1% in September to 3.5% in October," wrote the head of the Ministry of Finance.

What is the CPN package?

The CPN mechanism was launched on October 3, after part of the provisions of the Act on the tax on extraordinary profits of fuel companies entered into force.

The act, signed by the president, opened the way to a temporary reduction in excise duty and VAT on liquid fuels. At the same time, the president referred it to the Constitutional Tribunal as part of a follow-up review.

The costs of the reductions are to be financed from a new levy imposed on fuel companies achieving above-average profits.

According to the government's assumptions, the fuel price support package is to be valid until the end of 2026. The estimated cost of the entire solution is approximately PLN 5 billion.

This is not the first installment of the program

The CPN package has already been used as a tool to limit the increase in fuel prices.

The first version of the program was introduced at the end of March. It was a response to the increase in oil prices related to the war between the United States and Israel against Iran.

As part of the measures at that time, VAT and excise duty on gasoline and diesel oil were temporarily reduced. A mechanism of maximum fuel prices announced by the Minister of Energy was also introduced.

The first version of the program was valid until the end of June. The excise tax reduction ended earlier - in the middle of this month.

The next edition of CPN was launched during the holiday season, from August 17 to 31. This time the program did not include an excise tax reduction.