East European inflation accelerates on oil prices
Monday, October 10, 2005, 14:36
Eastern European inflation rates rose last month as oil prices surged, suggesting that a series of interest-rate reductions, which brought borrowing costs in the region to record lows, may be over, surveys of economists showed. Czech inflation accelerated to 2.2% from 1.7% in August, the local statistical office said. Hungary's rate was probably 3.8%, after the previous 3.6%, and in Poland prices may have risen 1.7%, compared with 1.6%, separate surveys showed. The faster pace of inflation following a 40% jump in crude this year may thwart efforts by central banks in Hungary and Poland to lower interest rates toward the European Central Bank's 2% benchmark.