Poland's wages and inflation continue to diverge

Poland inflation came in softer than what was expected in the month of November, even if the industrial wage growth surprised in upward trajectory, which continues the divergence between both.

Wages growth was speedy than expectations at 4% yoy and 1.3% mom in November, albeit there is a seasonal variation, which extends its steady pace of job and wage growth.

The core inflation dropped one tick , coming in closer to zero. The net implication of solid GDP growth and weak inflation seem dovish for the CEE central banks, the solid GDP growth is not turning out into any price pressure.

"We expect the Polish CB to cut rates by a further 50bps during 2016", says Commerzbank in a research note.Add to Anti-Banner