Deflated figures

Prices of consumer goods and services in March grew by 0.4 percent on March 2005, but dropped by 0.1 percent compared to February this year. "Inflation in March was lower than it had been expected, but in order to assess the situation better we need to wait for further indicators," a member of the RPP, Mirosław Pietrewicz, told PAP.

According to experts the inflation drop was largely due to the fall in prices in food, gas, and non-alcoholic drinks. Food prices fell by 0.1 percent on the previous month, mainly in connection with the Russian ban on the import of Polish agricultural goods. The price of fuel for private use dropped by 0.5 percent. Analysts say the RPP is unlikely to make any further interest-rate cuts this year. It is expected that at the end of 2006 inflation could stand below 1.5 percent, and there is even the risk of deflation. (Reuters)