GUS: consumer confidence index highest in five years

Retail sales in Poland rose by 3.1% y/y in August, reflecting stable growth in household consumption, supported by strong real wage increases and easing inflation at 2.9%. Consumer confidence has reached its highest level since the pandemic, with many households reporting improved financial conditions. Durable goods such as cars, furniture, and electronics recorded double-digit sales growth, signaling optimism about sustained financial stability.

While nominal wage growth slowed to 7.1% y/y – a relief for businesses after years of double-digit increases – real wages remain favorable for spending. The Monetary Policy Council views the cooling labor market as reducing inflationary pressures and is expected to implement another 25-basis-point interest rate cut in November following the new inflation forecast.

(WBJ)