Poland's CPI to have increased in April

Deflation in April has declined to -1.3% yoy from -1.5% in March in Poland, estimates Societe Generale. It is likely to be 0.1pp below the market consensus of -1.2% yoy. 

In monthly terms, prices are likely to have increased by 0.2%. An increase in clothing and footwear prices of 2.6% mom is expected (adding 0.14pp to headline CPI) due to new spring summer collections introduced by retailers. 

Moreover, fuel prices in April increased by 0.8% mom, which should cause growth of 0.7% mom in transport prices and 0.06pp to the monthly CPI. Food prices may decrease by a slight -0.1% mom, showing a continuing lack of inflationary pressure. "CPI should gradually increase in the coming months and reaching positive territory at the end of this year", added Societe Generale.