Growth in the producer price index (PPI) in Poland eased to 6.8% year-on-year last month, following revised growth of 10.3% the month before, according to the country’s statistics office on Monday.

The PPI has been on a downward trend since September as inflationary pressures in Poland are easing following the economic slowdown.

In addition, industrial production indicated an ongoing slowdown in economic activity at the beginning of the year, along with full-year GDP growth of no more than 1%.

Analysts now view the steep fall in PPI growth will also lead to an easing of headline inflation.

In addition, Poland’s consumer price index (CPI) growth for April stood at 14.7% year-on-year following a rise of 16.1% year-on-year in March. CPI is forecast to fall to under 10% year-on-year later in 2023, BNE IntelliNews reports.

Yet even under 10%, CPI growth will accelerate enough this year to leave little room for rate cuts despite weak demand in the domestic economy, say analysts. The central bank’s reference interest rate has remained at 6.75% since September.

In addition, prices within the most weighted manufacturing segment rose 1.7% year-on-year last month, after increasing 4.7% year-on-year in March, according to the latest data.

Growth also eased in mining and quarrying prices to 17.5% year-on-year in April following a revised gain in March of 21.8%.

Whereas electricity, gas and utility prices rose 42.7% on the year in April, compared to March’s 51% year-on-year revised growth. 

The PPI declined 0.7% in April on a monthly basis following a revised fall of 0.6% month-on-month in March, according to the statistics office.