Poland's July unemployment rate fell by 0.2 percentage points month-on-month but rose on the year, while retail prices rose 3.9 percent y/y, according to data from the central statistical office.

The sales figure was below expectations, as a Dow Jones Newswires survey of 12 economists had predicted a 4.3 percent annual increase. The rise was also less pronounced than it had been in the previous month, when it stood at 6.4 percent.

The jobless rate was in line with analysts' expectations and with earlier estimates from the Labor Ministry.

Some 1.81 million, or 11.4 percent of the work force, were registered as unemployed in July, compared to 1.84 million during the previous month and 1.68 million from July of last year.

Moody's ratings agency has raised its forecast for Polish GDP growth in 2010 to 2.7 percent, from 1.8 percent at the start of the year. Poland's finance minister has said that GDP growth of 3.5 percent for 2010 is achievable.