2023.03.2011:33:00UTC+00Poland Industrial Output Contracts; Producer Price Inflation At 1-Year Low

Poland's industrial production declined for the first time in thirty-three months in February, while producer price inflation eased further to the lowest level in a year, separate reports from Statistics Poland revealed on Monday.

Industrial production dropped 1.2 percent year-over-year in February, reversing a revised 1.8 percent increase in January. Meanwhile, economists had expected a further increase of 1.0 percent.

Moreover, this was the first decrease since May 2020, when production had slumped 16.9 percent.

Among sectors, manufacturing output contracted 0.9 percent annually in February, and that of electricity, gas, steam, and air conditioning supply dropped 4.7 percent.

On the other hand, the mining and quarrying production expanded 3.5 percent.

On a monthly basis, industrial output recovered 0.4 percent from January, when it fell by 3.2 percent.

In a separate report, the statistical office revealed that producer price inflation eased to 18.4 percent in February from 20.1 percent in the previous month.

Further, this was the slowest inflation rate since February 2022, when prices had risen 16.1 percent.

Prices for electricity, gas supply, steam, and air conditioning supply alone jumped by 72.9 percent annually in February.

Prices in mining and quarrying grew 29.0 percent, and manufacturing prices gained 11.3 percent.

On a month-on-month basis, producer prices were down 0.4 percent in February.

Data also revealed that average gross wages and salaries in the enterprise sector climbed 13.6 percent yearly in February versus the expected increase 12.0 percent. The monthly outcome was a positive growth of 2.6 percent.

The average paid employment in the enterprise sector showed an increase of 0.8 percent annually, while it dropped marginally by 0.1 percent on a monthly basis.