Actual (Feb): 4.6% y/y, consensus: 8.8% y/y, previous (Jan): 9.0% y/y
The industrial production fell by 1 pct in February, while it slowed down more than expected in the y-o-y comparison. Both the slowing manufacturing sector and the declining mining sector were behind. However, some of the branches still post very good growth rates: manufacture of metal products, manufacture of chemicals and chemical products and manufacture of machinery and equipment. The slowdown in industry may continue in the months to come, as indicates the PMI that has fallen back to fifty.
Actual (Feb): 6.3% y/y, consensus: 6.7% y/y, previous (Jan): 7.9% y/y
The inflation in producer prices has eased more than expected in February. In comparison with the previous month the index decreased by 0.3 pct, driven by mining, prices of vehicles, machinery, plastics, electronics, metals and pharmaceuticals. On the other hand, food prices and prices of coke and refined petroleum products, electricity and gas still rise. Although crude oil and other commodity prices were growing in February, iron ore stagnated. Moreover, the impact was moderated by the strengthening zloty.
Both the slower industrial output and the PPI indicate that the NBP is less likely to tighten its policy. The rates should stay stable in the coming months.