Poland's Future Inflation Index down 0.8 pts m/m in June - BIEC researcher
Poland's Future Inflation Index (WPI), forecasting the direction of changes in consumer goods and services prices several months in advance, has fallen by 0.8 points month on month in June, the strongest single decline in over two years, the economic researcher BIEC said in a report. Most factors point to lower price growth in the coming months,
As BIEC pointed out, a clear downward trend in the index has been visible since March.
"Most of its components are currently contributing to lower price growth in the coming months," the researcher said in the report.
BIEC noted that external factors, such as global commodity prices, continue to have a positive impact on the decline in the CPI.
Among domestic factors, lower inflation is mainly driven by the pricing policy of businesses and relatively low inflation expectations among both households and industry representatives.
BIEC reported that reductions in raw material prices are stabilising producers' costs on the domestic market and reducing pressure to raise them, which is fairly well reflected in producer inflation as measured by the PPI.
The average annual rate of producer price growth has been negative for nearly a year.
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