Poland's producer price index (PPI) declined 8.6% year on year in April (chart), following a revised fall of 9.9% y/y in March, the country’s statistics office GUS said on May 22.

The PPI has been on an incrementally declining trend as inflationary pressures are easing in Poland in the wake of the ongoing economic slowdown. “We expect the scale of PPI deflation to systematically decrease in the coming months,” PKO BP said.

PPI deflation is “facilitated by the dissipation of commodity price shocks, the absence of significant supply chain tensions, and still reduced demand compared to the peak of the last economic cycle,” Bank Millennium said in a comment.

Meanwhile, Poland’s April CPI growth came in at 2.4% y/y, up from 2% y/y in March, GUS reported earlier this month. Headline inflation is expected to grow in the second half of the year in the wake of the phasing out of measures reining in growth of energy and food prices.

Prices in the most-weighted manufacturing segment declined 7.7% y/y in April after falling a revised 8.9% y/y the preceding month, the breakdown of the data showed.

Mining and quarrying prices slid 9% y/y in April after a revised fall of -12.3% y/y in March.

Electricity, gas, and utility prices fell 7.1% on the year in April after declining a revised 19% y/y the preceding month.

The water supply segment saw prices expand 1.8% y/y in the third month, following a gain of 1.7% y/y in March.

In monthly terms, the PPI added 0.2% in April after falling 0.5% m/m in March.

The index grew 4.2% month on month in mining and quarrying while posting no change in manufacturing and utility segments. Prices inched up 0.1% m/m in water supply.