Food costs

"Inflation turned out to be higher than we thought. The main reason is food, which was falling in price slower than expected," said Łukasz Tarnawa, chief economist with bank PKO BP. "If winter turns out to be very cold and is combined with growing demand for fuel, then oil might hit $70 per barrel," said Urszula Cieślak, analyst with Reflex. The effects of high oil prices should be felt in Central Europe in a few weeks when the purchasing power of the nations' deteriorates, but this should have a limited influence on domestic inflation.  (Poland A.M.)