The dynamics of industrial production sold in May amounted to 15 percent and was in line with forecasts. On the other hand, PPI inflation, which at first glance could seem frightening at 24.7 percent, was slightly below expectations. The first and the second indexes will fall sharply in the coming months.
According to preliminary data, prices of industrial output sold (PPI inflation) in May 2022 increased by 1.3 percent compared to April 2022 and by 24.7 percent compared to the same month of the previous year.
"Prices were higher than a year ago in all industry sections. The largest increases were recorded in the section manufacturing and supplying electricity, gas, steam, and hot water by 45.4 percent," GUS said.
The Polish Economic Institute expects lower growth of production costs (PPI) in the following months.
"Prices of basic raw materials are already starting to fall. Falling demand in the global economy will reduce economic activity and raw material shortages. The drop in raw material prices will also slow down inflation in Poland. We will see this effect in the autumn," Marcin Klucznik, an analyst at the Polish Economic Institute, pointed out.