Poland CPI deflation to have eased in May

The deflation in May is expected to decrease -0.7% yoy from -1.1% in April. In monthly terms, prices are likely to have increased by 0.2% due to the estimated 0.8% mom increase in the cost of transport (on the back of 1.4% mom growth in fuel prices) and 0.4% rise in the cost of food. 

Transport prices should add around 0.07pp to the monthly CPI but subtract 0.71pp from the yoy figure. It is likely that the further increase in food prices will add 0.09pp to the monthly CPI but subtract 0.42pp from the yoy figure. 

"In our view, the CPI will turn positive in December this year. Monday, 15 Jun B", said Societe Generale in a report on Monday.