Latest inflation figures show impact of increasing fuel prices

Annual consumer inflation kept steady at a low of 0.5% in February, underlying benign regional price pressure and firming up market expectations of more interest rate cuts. Figures released by the Central Statistical Office (GUS) on Friday showed that the consumer price index (CPI) inched up 0.1% month-on-month in February, as weak consumer demand and low food prices continued to keep price growth in check. But the annual rate came slightly above the market consensus of 0.4%, which analysts attributed mainly to higher fuel prices. However, a recent weakening of the zloty may give an inflationary impulse unless the currency rebounds, Monetary Policy Council member Grzegorz Wojtowicz told Reuters over the telephone on Friday. (Reuters) A.Z.