Surprise fall in inflation and lower than expected figures for CPI

The lower than expected figure is largely the result of a change in the consumption basket from the beginning of the year. Furthermore, according to calculations, the country recorded 0.1% deflation last month in comparison to January. "So far we were expecting the inflation to stand at 2% at the end of the year, but now we believe it will amount to 1.5%," said Maciej Reluga, chief economist of BZ WBK. Further surprises related to the level of inflation might result in growing likelihood of Monetary Policy Council (RPP) lowering the interest rates later this month by as much as 50 basis points. (Parkiet, p. 1; Puls Biznesu, pp. 1, 4) M.M.