Poland's Q2 growth shows inflation easing - finance minister

Poland's second-quarter growth data show inflation pressure is easing and may suggest expansion might be close to its peak, finance minister Zyta Gilowska said today.

Economic growth slowed to 6.7 pct annual rate in the second quarter from 7.4 pct in the first three months of the year, but came in above analysts' expectations due to booming domestic demand, the data showed today.

'Second-quarter data are excellent,' Gilowska told reporters. 'They show pressures in trade are easing, which is particularly evident in the price of building materials, which makes pressure to raise prices weaker.'

Gilowska said the demand component of second-quarter growth is also weaker than expected which may suggest price pressure is easing.

'After the second-quarter growth data we might wonder whether the maximum has now been reached or not. I think it might be approaching,' Gilowska said.

Source:By Paweł Sobczak, forbes.com