Poland's producer price index (PPI) fell 2.6% year on year in December (chart), following a revised fall of 3.8% y/y in November, the country’s statistics office GUS said on January 22.

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

Prices in the most-weighted manufacturing segment declined 1.5% y/y in December after falling a revised -3% y/y the preceding month, the breakdown of the data showed.

Mining and quarrying prices fell 5.8% y/y in December after a fall of -4.9% y/y in November. 

Electricity, gas and utility prices fell 10.1% on the year in December after declining a revised -10.4% y/y the preceding month.

The water supply segment saw prices expand 3.4% y/y in the twelfth month, the same expansion rate as in November.

In monthly terms, the PPI declined 0.2% after growing a revised 0.2% month on month in November.

The index fell 1.5% m/m in mining and quarrying while sliding 0.1% m/m in manufacturing. In the utility segment, prices fell 0.2% m/m while flatlining in water supply.

Meanwhile, Poland’s December CPI growth came in at 4.7% y/y, unchanged since November, GUS reported earlier this month. Headline inflation is expected at around 5% y/y in early 2025.