Rising inflation makes interest rate hike likely this month

The statistics showed a 4% growth in prices in December as compared to the same month in 2006, which marked the fourth month in a row of such growth dynamics. "The latest data shows that the threat is serious. It is not only food and fuel which is becoming more expensive, but so are other products and services: health care, recreation and culture. According to our calculations, the base inflation (excluding food and fuel) increased in December by 1.8% from 1.5% in November (yoy)," said Bank BPH chief economist, Ryszard Petru, who went on to add that inflation will rise by another 4.4% in Q1 this year. "An increase in interest rates in January as well as another one in February or March is now a sure thing," said Piotr Bujak of BZ WBK. (Parkiet, pp. 1,2 ,3; Puls Biznesu, p. 9; Rzeczpospolita, p. B1 Dziennik, WSJ, p. 2; Gazeta Wyborcza, p. 29) A.K.