Inflation remains low and could briefly sink to zero this year

Inflation probably rose to 0.5% year-on year in February, up from a po st-1989 yoy low of 0.4% in January, the Finance Ministry said in a statement on Friday. Earlier the Central Statistical Office said food and non-al coholic beverage prices inched up 0.1% in the second half of February but showed a 0.2% decrease over the same period in January. According to Pekao economist, Dariusz Filar, there is a possibility that year-on-year inflation might fall below zero some time this year, but this will have no significant influence on the economy as it would probably only last briefly. (Gazeta Finansowa, March 8 - 14, pp. 1, 2) A.K.