Producer Price Index in Poland

The Producer Price Index measures the change in the factory-gate prices of Polish industrial goods sold on the domestic market (energy, mining and manufacturing, excluding construction), stripping out transport, distribution and taxes. It is published by Statistics Poland (GUS).

Compiled from a regular survey of a wide sample of industrial firms on their selling prices, producing an index with a base year of 100. The methodology is harmonised at European level, allowing comparisons, and is reported in year-on-year and month-on-month terms.

Producer prices are a leading indicator of inflationary pressure, since higher production costs pass through to consumer prices with a lag. The National Bank of Poland (NBP) therefore monitors it as an early signal for CPI and interest rates.

For the underlying trend it is worth excluding the most volatile component, energy. The data can be revised in later releases and not all industrial cost increases end up reaching the consumer.