Poland's producer price index (PPI) declined 9% year on year in January (chart), following a revised fall of 6.9% y/y in December, the country’s statistics office GUS said on February 20.

The PPI has been on a declining trend as inflationary pressures are easing in Poland in the wake of the ongoing economic slowdown. 

“We assume that the annual dynamics of the PPI may stabilise around the current level in February and March, supported by a stronger złoty,” Santander Bank Polska said in a comment.

“Subsequent quarters will likely bring a rebound in PPI growth dynamics, pushing it above zero by the end of the year,” it also said.

Meanwhile, Poland’s January CPI growth came in at just 3.9% y/y, the lowest in three years, GUS reported last week. The CPI’s decline rate is expected to hit bottom around March only to climb back up later on, as measures to rein in the growth of energy and food prices appear likely to be phased down or otherwise limited in scope.

Prices in the most-weighted manufacturing segment deepened their fall to -9.2% y/y in January after falling a revised -8.4% y/y the preceding month, the breakdown of the data showed.

Mining and quarrying prices slid growth 11% y/y in January after a revised gain of 2.1% y/y in December.

Electricity, gas, and utility prices fell 8.8% on the year in January versus a revised expansion of 4.5% y/y the preceding month.

The water supply segment saw prices add 1.9% y/y in the twelfth month, following a revised gain of 3.1% y/y in December.

In monthly terms, the PPI fell 0.2% in January after declining a revised 1.4% m/m in December.

The index fell 4.3 month on month in mining and quarrying while adding 0.2% m/m in manufacturing. In the utility segment, prices declined 2.4% m/m while growing 0.7% m/m in water supply.