Inflation rises but analysts are not concerned

"This data is slightly better than anticipated by the market. As a result, yields of bonds went up by 5-7 base points, while the złoty has slightly weakened," said Urban Górski, an economist at Bank Millennium. He stressed that inflation growth was due to an increase in prices of food, fuels and natural gas. Economists are positive about inflation prospects for 2006, as "inflation still remains at a very low level and one should not expect its growth. In Q3 it will drop below 0.5%, but in December it will reach 1.2%," said Bartosz Pawłowski, an economist with ING BSK. One should, however, not expect a rapid cut in interest rates. (Puls Biznesu, pp. 1, 8) M.M.