Poland's producer price index (PPI) fell 5.1% year on year in August (chart), following a revised fall of 5.1% y/y in July, the country’s statistics office GUS said on September 19.

The PPI has been on a declining trend trailing the economic slowdown in Poland. While the slowdown has ended now with GDP growth surging to 4% y/y in Q2, factory gate prices are expected to fall in the near term although at a diminishing rate.

Meanwhile, Poland’s August CPI growth came in at 4.3% y/y, up from 4.2% y/y in July, GUS reported earlier this month. Headline inflation is expected to keep growing by the end of the year in the wake of the phasing out of measures reining in the growth of energy prices.

Prices in the most-weighted manufacturing segment declined 4.4% y/y in August after falling a revised 4.3% y/y the preceding month, the breakdown of the data showed.

Mining and quarrying prices slid 5.1% y/y in August after a revised fall of 4.2% y/y in July. Electricity, gas, and utility prices fell 10.8% on the year in August after declining a revised 11.8% y/y the preceding month.

The water supply segment saw prices expand 3.5% y/y in the sixth month, the same as the revised y/y gain in July.

In monthly terms, the PPI slid 0.1% in August after falling 0.4% month on month in July.

The index declined 1.6% m/m in mining and quarrying while easing 0.1% m/m in manufacturing. In the utility segment, prices added 0.4% m/m while remaining unchanged m/m in water supply.