Inflation: Demand Destruction To Prevail

May 2009
Emerging Europe Monitor: Central Europe & Baltic States;May2009, Vol. 16 Issue 5, p1
Country Report
The article addresses the risk of inflationary pressures in Poland in the short term. Consumer price inflation increased 3.3 percent in February 2009, while month-on-month inflation increased to 0.9 percent from 0.5 percent over the same period. The inflation increase for February 2009 is partly caused by the sustained sell off in the Polish zloty. Analysts believe that the net effect on aggregate prices remain disinflationary over the medium term stems from the decline in domestic demand.


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