Poland's inflation declined less than forecast in August to 10.1% from 10.8% in July, according to preliminary data published on Thursday.

This is at a time when some economists predict the fall in price growth may lead to the central bank reducing interest rates in September.

Analysts had forecast inflation to slow to 10.0% compared to the year before, edging closer to single digits that, according to some policymakers, would be required to pave the way for reducing rates, Reuters news agency reports.

Governor of the National Bank of Poland (NBP), Adam Glapinski, said back in July that we may see a rate cut as soon as September should inflation decline to single digits.

As forecast, month-on-month prices remained flat, halting their decline following the first monthly fall in July since February last year.

"August inflation, according to the flash reading, is double-digit after all... However, we do not think that such a result will change the mood in the MPC - we are still betting on a September rate cut," according to mBank analysts on X, formerly Twitter.

The country's main interest rate has been on hold since last September at 6.75%, with markets focused on the timing of the first rate cut.

"To me, these are not conditions for a rate cut, but it's clear that the MPC's assessment is different, and after the July meeting, we assume that cuts will start before the end of the year," said the head of economic analysis at Santander Bank, Polska Piotr Bielski.

Whereas some policymakers have warned against cutting rates too quickly.

Furthermore, Q2 GDP was published by the country's statistics office on Thursday, which stood at -0.6% year-on-year, falling short of an initial estimate of -0.5%, the Reuters report adds.

Seasonally adjusted GDP for the quarter came in at -2.2% on a quarterly basis, compared to a previously released forecast of -3.7%.