Poland's producer price index (PPI) fell 3.7% year on year in November (chart), following a revised fall of 5.1% y/y in October, the country’s statistics office GUS said on December 19.

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

Prices in the most-weighted manufacturing segment declined 2.7% y/y in November after falling a revised 4.2% y/y the preceding month, the breakdown of the data showed.

Mining and quarrying prices fell 4.5% y/y in November after a fall of -6.7% y/y in October. Electricity, gas and utility prices fell 11.4% on the year in November after declining a revised -12.2% y/y the preceding month.

The water supply segment saw prices expand 3% y/y in the eleventh month, the expansion picking up from a revised gain of 2.8% y/y gain in October.

In monthly terms, the PPI added 0.3% after growing a revised 0.5% month on month in October.

The index grew 0.3% m/m in mining and quarrying while growing 0.5% m/m in manufacturing. In the utility segment, prices fell 0.9% m/m while inching up 0.1% m/m in water supply.

Meanwhile, Poland’s November CPI growth came in at 4.7% y/y, down from 5% y/y in October, GUS reported earlier this month. Headline inflation is expected at around 5% y/y at the turn of 2024 and 2025.