Inflation at record low could signal the first signs of economic recovery

Inflation fell to an unprecedented low level and stood at 3.3% last month, versus 3.5% in February. Grzegorz Wojtowicz, a member of Monetary Policy Council (RPP) said that this was due to the anti-inflation policy pursued by the RPP. According to analysts lower inflation increases the chances of a reduction of interest rates by the Council. The outlook for the level of inflation in summer and fall depends a lot on food and fuel prices. "Inflationary pressure is weak. By the end of the year inflation could well below 4%," says Stanislaw Gomulka, a Finance Ministry adviser. Hanna Gronkiewicz-Waltz, vice-president of the European Bank for Reconstruction and Development (EBRD) said that Poland might expect an economic recovery from the second half of the year. During Monday's meeting with journalists she pointed out that too pessimistic forecasts of economic growth are accompanied by too optimistic assumptions of inflation. (Rzeczpospolita, p. A1; Zycie, p. 9; Prawo i Gospodarka, p. 9; Reuters) P.W.