Inflation rises slightly above analysts expectations

The Central Statistical Office (GUS) published data on Friday which shows that in October inflation grew by 1.3% mainly due to the growing price of food and energy. "However, this is not the effect of growing demand, but is rather a seasonal factor. An important issue pushing up the CPI index was the so called base-effect, as excise on alcohol was lowered at the same time last year," said PKO BP economist Piotr Kalisz. Despite the fact that inflation was higher than anticipated by analysts, the market calmly accepted the news. "Everyone was expecting the increase. Moreover, the figures have no significance for the Monetary Policy Council, which will not change interest rates by the end of 2003," said bank Pekao economist Jacek Wiśniewski. According to analysts, inflation is likely to stand at 1.5% by the end of the year. Furthermore, corporate deposits jumped by zł. 3 billion in October, which should be attributed to the fact that companies are improving their results and have more cash at hand. (Parkiet, p. 8) M.M.