Poland's producer price index (PPI) declined 4.1% year on year in October (chart), following a revised fall of 2.7% y/y the preceding month, the country’s statistics office GUS said on November 21.

The PPI has been on a declining trend since October as inflationary pressures are easing in Poland in the wake of the economic slowdown. Poland's October CPI growth came in at 6.6% y/y after an increase of 8.2% y/y the preceding month. CPI is now expected to keep falling to around 6% y/y by the end of the year, analysts say.

The accelerating PPI deflation owes to a high reference base from a year ago, but not just that, analysts say.

“Prices declined most sharply in the coke and refined petroleum products manufacturing and processing [sectors], in conjunction with global energy commodity prices and a stronger zloty. We believe that the coming months will be marked by further deflation in producer prices,” ING said in a comment on the GUS release.

Prices in the most weighted manufacturing segment deepened their fall to -7.5% y/y in October after falling a revised 5.5% y/y the preceding month, the breakdown of the data showed.

Mining and quarrying prices picked up growth to 4.4% y/y in October after a revised gain of 2.8% y/y in September.

Electricity, gas and utility prices expanded 12.3% on the year in October, picking up versus a revised expansion of 8.3% y/y the preceding month.

The water supply segment saw prices expand 3.6% y/y in the tenth month, versus a revised gain of 3.3% y/y in September.

In monthly terms, the PPI declined 0.5% in October after a revised gain of 0.3% m/m the preceding month.

The index fell 1.3% m/m in mining and quarrying while easing 0.6% m/m in manufacturing. In the utility segment, prices declined 0.1% m/m while growing 0.2% m/m in water supply.