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CPI Falls On M/M Basis, President to Announce Date For Elections Within Days

POLAND
  • Poland's CPI inflation slowed to +10.8% Y/Y in July, missing the +11.0% consensus forecast in a Bloomberg poll. On a monthly basis, prices fell 0.2% M/M versus expectations of another flat reading. PKO wrote that it was the first monthly decline in prices since February 2022, or since August 2020 if we adjust for tax effects. According to mBank analysts, core CPI inflation may have eased to +10.7% Y/Y from +11.1%. The data will support the case of the dovish wing in the Monetary Policy Council, who place much emphasis on current inflation readings.
  • Sources told Onet that President Andrzej Duda may announce the date for the upcoming parliamentary elections within a week. It is expected that the elections will be held alongside a referendum on the EU migrant relocation scheme on October 15.
  • The "Third Way" alliance between centre-right agrarian PSL party and centrist Poland 2050 is reportedly close to a collapse, with multiple media outlets reporting that PSL are exploring options for a partnership with populist agrarian AgroUnia.
  • S&P Global Manufacturing PMI may have deteriorated to 44.5 in July from 45.1 prior. The data will hit the wires at the top of the hour.

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