Poland posts higher retail sales growth

Poland's retail sales in May is in increasing trend. The retail sales growth is expected to accelerate to 1.2% in May from -1.5% in April, states Societe generale. 

Retail sales were mainly driven by food, car sales and sales in other specialised stores. Deflation is still important for retail sales in nominal terms. 

The bank estimates, "the fuel sales arelikely to be negative at around -10.0% yoy. In real terms, retail sales growth should amount to 4.2% yoy." 

Still, the persistent lack of inflationary pressure and the growth of real disposable income should support consumer spending in the coming months, adds SocGen.