Inflation is on a downward curve despite rising oil prices

Most analysts predict that it will be slightly lower than in September, falling from 4.4% to 4.3%. Economists say that even though oil prices will keep growing, food prices will not increase as quickly as last year, which will result in a decrease in inflation. But this does not necessarily mean that the Monetary Policy Council (RPP) will not increase interest rates. Jacek Wiśniewski, Pekao SA's economist said, "In the first quarter of 2005 there will be no reason for changing interest rates because inflation will keep falling. I believe the period of rate rises is over and the RPP will start reducing rates in the middle of 2005." (Parkiet, p. 8) A.F.