Single-digit inflation a possibility before year's end according to economists

Single-digit inflation a possibility before year's end according to economists The prices of goods and services rose by 1% in September relative to the preceding month. According to analysts the rise in price of foodstuffs could be the result of the recently introduced value added tax (VAT) on agricultural produce. Nevertheless, the annual inflation rate dropped from 10.7% in August to 10.3% in September, giving many economists reason for optimism that inflation could reach a single-digit figure by the end of the year. According to the Government Center for Strategic Studies (RCSS), inflation could settle at 9.25%-9.7% at the end of the year.Despite the drop in inflation, the Monetary Policy Council (RPP) is unlikely to cut interest rates unless the government reveals its forecast of economic indicators used in preparing next year's budget. Towards the end of the year, inflation could be determined by the prices of fuel and food. In related news, the latest data from the Central Statistical Office (GUS) show the price of foodstuffs, alcoholic beverages, and non-alcoholic beverages rose by 1.5%, 0.7%, and 0.4% in September, respectively. At the end of the first nine months of the year, food prices rose 7% while those of beverages and services rose by 6.3% and 9.2% respectively. (Rzeczpospolita, p. B2).