Despite market expectations for it to remain unchanged, Poland’s Producer Price Index fell to -0.1 percent in November from 1.0 percent in October. The reading is the index’s lowest since April 2010. According to Bank Millennium, the decline in producer prices was likely influenced by falling prices of industrial raw materials (such as coal, petroleum and metals) and the strengthening of the złoty, driving exports and imports prices down.

The decline in PPI may also be traced back to a high statistical base effect last year, when the depreciation of the złoty resulted in a steep price hike in the manufacturing sector, the bank analysts wrote, adding that they expected PPI to decline further by 25 basis points in December.

RG, BS