EU accession's impact on inflation likely to be less than previously thought

Because of this, the price index for articles and services will probably rise at most by 0.9%. According to the NBP, prices in March rose by 1.7% while the projected inflation for April is 2.2%. Analysts claim that price rises connected with accession have already taken place, but the country will have to wait until the fall for forecasted price decreases. Analysts think that some articles and services should become cheaper due to the opening up of markets and increased competition, especially in the telecoms and energy sectors. Indeed, only the continuing high prices for oil could be a threat to the Monetary Policy Council's objective of keeping inflation for 2004 and 2005 at between 1.5-3.5%. The increase in oil prices should not, however, influence the projected rate of economic growth this year, with GDP growing by 6% in Q1. (Puls Biznesu, p. 10) A.F.