Interest rate rise looms as inflation hits 2.5%

According to economists this will force the Monetary Policy Council to raise interest rates at its next meeting. In March inflation jumped by 2.5% compared to the same time last year, more than economists were expecting considering inflation sat at 1.9% in February. The increase is largely due to a 0.9% increase in food prices. The price of vegetables has risen by 3% and fruits by 2.1%. The price of flour has also soared by 1.9%. In conjunction with these jumps, all costs connected with accommodation rose, but perhaps the most noticeable increase was that of transport jumping  2.5% compared with February. According to Mateusz Szczurek, an economist from ING Bank Ślaski, inflation rates will exceed 2% several times in 2007. (Rzeczpospolita, April 14-15, p.B1)