5.2% rate in July brings inflation down to its lowest level since 1989

Inflation fell in July to its lowest level since 1989, with the economic slowdown and punishing interest rates depressing retail price growth to 5.2%. This was a full percentage point down from June's rate of 6.2%. According to Central Statistical Office (GUS) figures, month-on-month retail prices eased by 0.3%, to post their second drop in a row. Commenting on the data, professor Stanislaw Gomulka from the London School of Economics said, "One should expect inflation to still be falling within the next two, three quarters, and the minimum in that time may be from 3% to 5%." (Rzeczpospolita, p. B1; Reuters) P.W.