Inflation rate likely to hit 2% by the end of the year

Yesterday, the deputy president of the National Bank of Poland (NBP), Andrzej Bratkowski, announced that the annual inflation rate would most likely increase from 0.4% in May to 2% by the end of 2003, but it could indeed stay within the 2% inflation target. "It all depends on the złoty exchange rate, economic revival in the second half of the year and the price of food and fuel," Bratkowski told the National Press Agency (PAP) According to the official, the NBP has limited room for manoeuvre as far as the inflation target is concerned and is now beginning to focus on its policy for next year. "Whether or not we exceed the inflation target depends on factors, which in the short term, we have no influence over," the official said. The Monetary Policy Council's inflation target for this year is 3% +/- 1 percentage point, while according to the Finance Ministry, inflation in 2004, will not exceed 1.5%. (www.onet.pl) J.K.