Polish retail sales continued to rise in August, increasing 5.2% year on year.

The increase follows a 5.7% rise in July.

A stable unemployment rate of 10.8% helped drive demand. This is in sharp contrast with nearby Hungary, where unemployment continues to rise, partly due to a decline in demand for Hungarian exports.

Retail sales in Hungary dropped 6.6% in July as the government increased the VAT rate from 20% to 25%.