Lower food prices suggest that the inflation figure may be down in June

Food prices fell substantially in the second half of June, the latest Central Statistical Office (GUS) data have revealed. In the period from June 16 to 30, the price of food and non-alcoholic beverages fell by 1.6%. The figure is considered very positive by economists, since it indicates that inflation may finally have reached its peak, and may start declining in June. Predictions are that inflation may be down to 6.4% for the month, having been 6.9% in May, and could perhaps be as low as 5.3% in July. However, the predictions for August suggest that inflation may start to rise again, to stabilize at around 5.4%. The positive data about food prices, and the resultant slowing of inflation, is not, however, expected to influence the decision of the Monetary Policy Council (RPP) on the level of interest rates. The economists suggest that there will be no further cuts in the foreseeable future. (Zycie, p. 8) K.K.