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PPI quickens to 5.9% y-o-y in July


The producer price index (PPI) amounted to 5.9% y-o-y in July, the Central Statistical Office (GUS) announced. The figure was marginally higher than a market consensus of 5.8% y-o-y.

Of Poland’s main industrial sectors, by far the steepest price increase (up by 18.8% y-o-y) occurred in mining-quarrying. In the three other main sectors price growth was in the single digits. Thus, prices in water supply, sewerage, waste management and remediation activities climbed by 6.4% y-o-y, in manufacturing they went up by 5.4% y-o-y, and in electricity, gas, steam and air conditioning supply the PPI amounted to 3.4% y-o-y.

On a month-on-month basis the PPI was 0.4% in July.

In January-July producer prices jumped by 7.1% y-o-y. Because of a rising comparative base, we expect the PPI to ease gradually in the coming months. According to our forecasts, in 2011 as a whole average annualised PPI inflation will amount to 5.6%.

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