The average wage and salary in the Polish enterprise sector increased by 10.2% year-on-year in October (ING: 10.5%; consensus: 10.0%) following 10.3% YoY growth in September, reaching PLN 8,317 per month. The wage dynamics were supported by favourable calendar effects, while a high reference base in mining – where bonuses were paid in October 2023 – restrained growth.
In real terms (adjusted for inflation), wage growth in businesses slowed to 5.0% YoY from 5.2% YoY in September and nearly 10% YoY in the first quarter of 2024. Real wage growth has been systematically decreasing since the beginning of the year, and slowed down after the inflation rebound in July due to higher energy prices.
Household consumption growth was slower than the improvement in real disposable incomes in the first half of the year, indicating an increased propensity to save. In the second half, slower income growth was accompanied by a still-limited propensity to spend, and National Bank of Poland (NBP) surveys suggest that households are concerned about rising living costs in the future and are increasing their savings. This may be due to higher energy bills and negative experiences from 2023, when inflation significantly hit real incomes.