These data will translate into store prices with a delay, but sooner or later they will hit our wallets. Producers in industry, agriculture and construction significantly increased the prices of their products and services in October, the Central Statistical Office reported on Monday. In the case of industry, there was the highest increase in exactly 24 years. Along with the increase in prices for four months, the level of prosperity in Poland is falling.
- The price of meat for pork chops is falling. However, it is different with beef and chicken – these get more expensive instantly
- The prices of cereals and milk are also going up fast
- The industrial sector also increased its prices, and it was the fastest since October 1997. Apart from the fastest-growing fuels, the prices of coal and electricity were also rising rapidly.
- The cost of building housing goes up slower than inflation
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Industrial production prices increased by 11.8 percent. year on year in October, purchase prices of agricultural products by as much as 15.6%, and construction and assembly prices by 5.5 percent. – GUS reported on Monday. This information heralds a further increase in inflation, which in September amounted to, let us recall – 6.8 percent. In the case of industrial prices, this is highest increase since October 1997
– The data indicate a further acceleration of CPI inflation in the coming months. We currently see the peak in the vicinity of 8.5 – 9 percent. yy – BNP Paribas analysts comment.
The increase in prices will have an impact on the level of prosperity in Poland. The Prosperity Index – reflecting the economic condition of Polish society – in November this year. Moreover, it fell by 0.4 points compared to the previous month’s value, the Biuro Inwestycji i Cykli Ekonomicznych (BIEC) reported. The indicator has been systematically deteriorating for four months.
See also: Poland is still at the forefront of inflation in Europe. Here are the prices that determine it
“Rising inflation is the main contributor to the decline in the Welfare Index. The Consumer Price Index (CPI), which measures it, free from the effects of seasonal factors, rose to 7.2% in October. Readings in the following months of the year will bring a further rise in inflation. Strength. the purchasing power of our earnings is weakening month by month, and savings are depreciating, “the report reads.
Purchase prices of agricultural products are rising
Food is a key component of inflation in Poland and a key element of our spending. It accounts for as much as 27.8 percent. the inflation basket, with meat (6.6% of the basket) and bread (4.2%) at the fore. And at purchase prices, it looks like prices will accelerate.
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What farmers are enjoying today will not be joy for the rest of society. As soon as producers start negotiating new prices with supermarket chains, they will also translate into consumer inflation.
Prices triticale increased by as much as 46.3 percent. yy up to PLN 930 per ton, rye by 44.2 percent. up to PLN 868 per ton, wheat by 37 percent. y / y to PLN 1,047 per ton, and maize by 35 percent. up to PLN 687 per ton. The price of poultry in procurement has increased by as much as 22 percent. up to PLN 4.25 per kilogram, and cattle by 34 percent. up to PLN 8.64 per kg. Swine cheaper by 7 percent. up to PLN 4.20 per kg. Pork chops will be cheaper, but beef and chicken are quite the opposite. The price of milk in the purchase was increased by 13 percent. y / y up to PLN 1.64 per liter.
Industry is also raising prices
Not only agriculture is raising prices quickly, but also industry. Year-on-year increase in sold production prices amounted to as much as 11.8%. – GUS reported on Monday. – PPI producer price index increased […] significantly above market expectations (10.8 percent). Prices rose faster in all major sections of the industry. The PPI index is likely to remain at a similar level in Q4, commented analysts from the Polish Economic Institute.
Among others, those who still heat their homes with coal will suffer. Prices of sold production hard coal and lignite went up by 15.4 percent. Every year.
The selling prices of producers and suppliers of electricity, gas, steam and hot water also went up – by an average of 8.5%. yy. Water supply, sewage and waste management went up 3.8 percent. Electricity, gas and heat account for 9.1 percent in total. the inflation basket, and water and other housing expenses account for 6.1 percent.
All products containing metal will also become more expensive. Metal ore prices are higher by as much as 36.7 percent. compared to October last year, and the prices of metals alone increased by as much as 40.9 percent.
However, the prices of the production of coke and refined petroleum products increased the most (by 86.3% y / y)what we see at petrol stations where the price of a liter of both gasoline and diesel fuel already exceeds PLN 6.
Prices of wood, cork, straw and wicker products went up sharply, which increased by 18.9%. yoy, chemicals and chemical products (+17.4% yoy), paper and paper products (+11.8%), metal products (+10.7%), and rubber and plastic products ( +9.6%).
Against this background, food prices rose relatively slowly – by 7.6 percent. yoy, furniture (+ 6.2%), computers, electronic and optical products (+ 5.4%) and non-metallic raw materials (+ 5.2%), mainly construction materials.
The prices for producers were the slowest: electrical equipment (+3.6% y / y), textiles (+2.9% y / y), beverages (+2.7%), transport equipment other than cars (+2.6% y / y) .), leather and leather products (+2.2%), pharmaceuticals (+1.0%), motor vehicles (+0.3%).
There were even products that were cheaper, but this is a definite minority. Prices were lowered by manufacturers of machinery and equipment (-0.1% y / y), tobacco products (-1.9%), clothing (-2.2%), as well as printing and reproduction of recorded information carriers (-2.5% y / y). ).
Housing construction prices slower than inflation
We have already written that about 5.2 percent. The prices reported by producers of products made of non-metallic raw materials, which mainly consist of building materials, went up. Prices of construction services will also stop the prices of new flats from falling in the near future. The price of construction of buildings for contractors increased by 6.1 percent. – GUS reported.
In total, the prices of construction and assembly services rose by 5.5 percent. The prices of civil engineering structures, i.e. roads and bridges (+5.6% y / y) and even slower specialist construction works (+ 4.8%).