March inflation shows signs of decreasing but not fast enough to reach target
In March prices of goods and services were higher by 10.3% than the same
period last year according to the Central Statistical Office (GUS). The
average year-to-year inflation rate decreased by 0.1% compared with
February. The last decrease in the inflation rate occurred in June 1999. "In
April inflation will decrease, maybe even below 10%," said Miroslaw Gronicki
from the Center for Social and Economic Analysis (CASE). Yesterday the zloty
exchange rate remained unchanged after the announcement of the inflation
level. In the second half of 2000 we should hope for regular decreases in
inflation. Adviser to the Treasury Minister Stanislaw Gomulka says by the
end of June inflation will drop to 9.5-10%. By the end of December it can
even decrease to 7.0-7.5%. If this is true the inflation rate will still be
higher than the 6.8% rate forecast by the Monetary Policy Council (RPP).
(Parkiet, page 1, 10, Gazeta Wyborcza, page 1, 21, Rzeczpospolita, page B5)
M.M.
