Polish headline inflation likely slowed down further in June, PMI index to have rebounded slightly

Polish flash inflation data for the month of June is set to release tomorrow. According to an Erste Group Research report, the flash inflation is expected to point towards further easing of inflationary pressure.

“We expect headline CPI to drop further, to 2.7 percent y/y (from 2.9 percent y/y in May), on the back of low oil prices and slowing growth of food prices”, said Erste Group Research.

Services prices continue to be in an upward trend and continue to push inflation up. Meanwhile, the manufacturing PMI data for the month of June is set to release later this week. According to the market consensus, the manufacturing PMI is expected to have rebounded further and risen to 46.1 in June from May’s 40.6. Even if the PMI points to recovery of economic activity from the historical lows seen in April, market sentiment continues to be subdued.