Inflationary pressures continue to fall, helped by falling food prices

Analysts are yet again revising down their forecasts for inflation, as in view of falling food prices, the consumer price index is now likely to dip further down from the May figure of 1.9%. Food products in the second half of June were 1.9% cheaper than in the respective period of May. This leads analysts to believe that inflation will sink to a new all-time low of 1.5% to 1.6% in June. Furthermore, this level could also be maintained in July. "There is no demand pressure and food prices will continue to fall in July, therefore I believe that inflation is likely to be at 1.6% in July," said Maciej Reluga from Bank Zachodni-WBK. (Rzeczpospolita, July 6-7, p. B2) T.J.