Poland's producer price index (PPI) fell 5.2% year on year in October (chart), following a revised fall of 6.2% y/y in September, the country’s statistics office GUS said on November 25.

The PPI has been on a declining trend, reflecting the still relatively low demand that's linked to sluggish Germany economy and the domestic expansion only beginning to gain sustained momentum, analysts say. The expectations are, however, for the indicator eventually arrive in positive territory sometime in the early 2025.

Prices in the most-weighted manufacturing segment declined 4.4% y/y in October after falling a revised 5.4% y/y the preceding month, the breakdown of the data showed.

Mining and quarrying prices fell 6.7% y/y in October after a revised fall of 9.4% y/y in September. 

Electricity, gas, and utility prices fell 12.1% on the year in October after declining a revised 11.8% y/y the preceding month.

The water supply segment saw prices expand 2.8% y/y in the tenth month, easing from a revised 3.1% y/y gain in September.

In monthly terms, the PPI added 0.4% after sliding a revised 0.3% m/m in September.

The index added 1.6% m/m in mining and quarrying while growing 0.5% m/m in manufacturing. In the utility segment, prices fell 1.4% m/m while declining 0.1% m/m in water supply.

Meanwhile, Poland’s October CPI growth came in at 5% y/y, up from 4.9% y/y in September, GUS reported earlier this month. Headline inflation is expected at around 5% y/y by the end of the year in the wake of the phasing out of measures reining in the growth of energy prices.