Experts claim inflation at less than 9%, predict continued decline in January

Inflation very likely dropped to less than 9% in December, according to analysts scrutinizing the data about inflation recently released by the Central Statistical Office (GUS). According to the Finance Ministry, inflation at the end of 2000 reached 8.6%-8.7%. Further predictions show that inflation in January will continue to drop despite increases in excise taxes on fuels. According to economists, official price increases are having less of an effect on inflation from year to year. "I do not think that the increase in excise taxes and energy prices in January will have much effect on inflation (...)," said Barings economist Krzysztof Rybinski. The decline in inflation will stop, however, in March when gas prices will be raised. "I estimate that during the last four months inflation has dropped by 2.6%. That tendency cannot last forever, however, and the effects of fighting inflation will slow down," warned Boguslaw Grabowski of the Monetary Policy Council (RPP). According to him, RPP receives no support from the government in fighting inflation,and there are likewise no signs it is fighting monopolists, although such plans were announced last August and September. (Puls Biznesu, pp. 1, 9) M.M.