Poland's producer price index (PPI) fell 1.5% year on year in May (chart), following a revised decline of 1.6% y/y in April, the country’s statistics office GUS said on June 23.

The PPI deflation has been a feature since mid-2023, reflecting the relatively low demand linked to the sluggish German economy and the domestic economic growth still lacking sustained momentum, analysts say. 

The expectations are, however, for the indicator to arrive in positive territory sometime in the first half of 2025. The index has been trending up since the beginning of 2024, albeit unevenly.

Prices in the most-weighted manufacturing segment declined 1.2% y/y in May after falling a revised 1.5% y/y in April, the breakdown of the data showed.

Mining and quarrying prices fell 10.7% y/y in May, deepening from a revised 9.2% y/y drop in April. Meanwhile, electricity, gas and utility prices decreased 1.6% y/y in May, reversing the revised 0.2% y/y gain the preceding month.

The water supply segment saw prices rise 2.5% y/y in May, down slightly from a revised 3.4% y/y increase in April.

In monthly terms, the PPI declined 0.2% in May after falling 0.3% month on month the preceding month.

The index rose 0.3% m/m in mining and quarrying, while falling 0.2% m/m in manufacturing. In the utility segment, prices declined 0.5% m/m, while water supply prices slipped 0.1% m/m.

Meanwhile, Poland’s May CPI growth came in at 4% y/y, the expansion rate easing by 0.3pp versus the preceding month, GUS reported on June 13.