Missing parts

What else caught our eye

• Core inflation rose to 4.2% y/y in September (from 3.9% in August) on rising prices of furniture, household appliances, communication, and in HoReCa. PPI inflation reached 10.2% y/y, mostly on surging prices of energy commodities, as well as industrial supplies.
• Labour market data for September showed no sign of a price-wage spiral, as employment growth decelerated to 0.6% y/y from 0.9% in August, whereas wage growth slowed down to 8.7% y/y from 9.5% a month before.
• Consumer confidence sunk in October. As the next wave of pandemic does not seem to significantly impact the sentiment, we see mounting inflation as the main culprit. Meanwhile, economic sentiment in October slightly improved, mainly in transportation, IT, finance and construction, and is now significantly higher than year ago.
• M3 money supply trend moderated in September to 8.6% y/y, mainly on base effects, amid rising deposits and slowly rebounding loans.
• Minutes of the last MPC meeting showed that the Council hiked rates fearing that inflation might not return to the target within the projection horizon, whilst the risk that pandemic might hurt the economy declined.
• S&P Ratings’ analyst for Poland said that the rating action would be possible in case of a delay or a suspension of EU funds transfer to Poland. This and other matters are being discussed during the ongoing summit of the European Council, which did not conclude before the PMW was closed.