Food prices continue to drive inflation up in September worrying stock market

Inflation at the end of the year is expected to reach 10.5%. "The factor now perpetuating inflation growth is high food prices, which rose by 2.1% in the second half of September," said Tadeusz Chroscicki from the Government Center for Strategic Studies (RCSS). Still, Miroslaw Groniecki from the Socio-economic Analysis Centre (CASE) presents a somewhat more optimistic view and suggests inflation at the end of the year will be between 10.3%-10.4%. At the same time the money supply on the market increased by 0.3% in the first 20 days of September and has now hit zl. 279.4 billion. This however had no positive influence on Warsaw Stock Exchange (WSE) investors, who have been reacting nervously to the information about the current account deficit, which is $91 million higher than predicted. (Prawo i Gospodarka, page 1, 11)