Polish retail sales rise less than expected in July
WARSAW, Aug 22 (Reuters) -Polish retail sales PLRSCO=ECI in July rose less than expected, statistics office data showed on Thursday, as consumers remained cautious amid rising energy costs and high interest rates.
Retail sales, at constant prices, increased 4.4% year-on-year in July. Analysts polled by Reuters had expected a rise of 5.6%.
In monthly terms, retail sales at constant prices rose 1.9%.
"This isn't however bad data, but rather confirming ... a moderate increase in the inclination of households to consume," Bank Pocztowy chief economist Monika Kurtek said.
"Household spending is growing, but very cautiously compared to the recorded increase in wages, which indicates a certain restraint and a current focus on increasing savings."
Data earlier this month showed Poland's consumption-driven economic growth significantly beat expectations in the second quarter, while wages in July maintained double-digit growth, as expected.
Some households remain burdened by loan repayment instalments at high interest rates and July's phasing out of energy price caps could have caused additional caution, Kurtek said.
Poland is betting on a wage growth-driven consumer revival to underpin its economic recovery in 2024, with the country's finance minister saying in June that 3.1% year-on-year growth could safely be expected.
Household spending should grow cautiously in the coming months, meaning "good news for the Monetary Policy Council, as such a development will not generate inflationary pressure," Kurtek added.
Poland's consumer price inflation rose sharply in July, exceeding the central bank's target range for the first time since January, after the government partially lifted price caps on energy prices.
Reporting by Karol Badohal in Warsaw; Editing by Shounak Dasgupta
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