Poland's producer price index (PPI) declined 6.4% year on year in December (chart), following a revised fall of 5.1% y/y the preceding month, the country’s statistics office GUS said on January 10.

The PPI has been on a declining trend as inflationary pressures are easing in Poland in the wake of the still ongoing economic slowdown. Poland's December CPI growth came in at 6.2% y/y, 0.3pp below the November expansion rate.

The CPI’s decline rate is now expected to slow down in 2024, given the temporary character of measures to rein in the growth of energy and food prices, which appear likely to be phased down in the second half of the year. 

Analysts also point to an intermittent acceleration of CPI growth to around 7% y/y once the price-limiting measures expire

Prices in the most weighted manufacturing segment deepened their fall to -7.9% y/y in December after falling a revised -7.7% y/y the preceding month, the breakdown of the data showed.

Mining and quarrying prices eased growth to 2.6% y/y in December after a revised gain of 3.3% y/y in November.

Electricity, gas, and utility prices fell 3.7% on the year in December, easing considerably versus a revised expansion of 4.9% y/y the preceding month.

The water supply segment saw prices expand 3% y/y in the eleventh month versus a revised gain of 3.2% y/y in November.

In monthly terms, the PPI declined 0.8% in December, which was the same fall rate as in November.

The index remained unchanged month on month in mining and quarrying while easing 0.9% m/m in manufacturing. In the utility segment, prices declined 1.1% m/m while sliding 0.1% m/m in water supply.