The flash reading puts Poland’s inflation at a 20-year high, adding ever more political heat to the debate about whether the central bank should raise rates.
The reading is an upward revision of 0.3pp versus the flash estimate, and shows that Poland has well and truly shaken off the pandemic-induced recession.
Quarter-on-quarter, Czech GDP increased by 1% in 2Q21, mainly due to a growth in final consumption of households and in gross fixed capital formation.
Hungary’s labour market has been resilient and recovered quickly from the pandemic, helped by coordinated economic protection measures by the state and the central bank.
Jobless figures fall for fourth consecutive month.
A move to quash accelerating inflation from the NBP is, however, unlikely before it is clear how big the impact of the expected fourth wave of the COVID-19 pandemic will be.
Growth expected to slow if government reimposes COVID-19 restrictions in the autumn.
Czech consumer prices increased by 3.4% year-on-year in July, the highest figure since July last year, driven by higher prices in transport (by 18.5%) up by 0.6 percentage points (pp) month-on-month.
Hungary’s consumer prices rose 4.6% y/y in July, slowing from the peak of 5.3% in the previous two months.
Czech industrial production increased by 11.4% year-on-year and by 1% month-on-month in June, according to the latest data from August 6 released by the Czech Statistics Office. The value of news orders went up annually by 22.8%.
The WIG was up 0.15% to 68,487.65 points on August 9, reaching a record high for the fourth session day in a row.
All branches of manufacturing contributed to the increase, but growth slowed significantly in the vehicle segment, which has the largest weighting.
Month-on-month, the unemployment rate fell 0.1pp.
Prices elevated by a combination of demand for electricity for cooling and an outage at one of the reactors of Romania’s nuclear power plant.