Poland’s producer price index (PPI) fell 2.5% year on year (y/y)  in December 2025 (chart), following a revised fall of 2.3% y/y in November, further extending the deflation trend that began in mid-2023, the Central Statistical Office (GUS) said on January 22.

The reading was below the consensus, which assumed the index would fall 2.1% y/y in December. 

“The significant rise in domestic labour costs in recent years has made it increasingly difficult to compete with low-cost imported goods. As a result, pressure on producer prices remains, supporting [PPI] disinflation,” ING said in a note.

In the manufacturing sector, which carries the largest weight in the PPI basket, prices dropped 2.7% y/y in December after a fall of 2.4% y/y in November, GUS data showed. 

Mining and quarrying recorded a 1.7% y/y fall, easing from a revised 4.3% y/y drop the preceding month. Electricity, gas and utilities prices slipped 1.6% y/y in the final month of the year after a revised 1.3% y/y fall in November. Meanwhile, prices of water supply services rose 1.7% y/y, up by 0.3pp from the prior month’s revised reading.

On a monthly basis, producer prices declined 0.4% m/m in December after a 0.1% m/m drop in November. Manufacturing prices fell 0.4% m/m, while decreasing 1.3% m/m in mining and quarrying. Utilities’ prices declined 1.2% m/m, while prices in the water supply segment rose 0.3% m/m.

Meanwhile, Poland’s consumer price index (CPI) rose 2.4% y/y in December, easing by 0.1pp compared to the preceding month, GUS reported earlier this month.