Such a timing has a simplifying effect on state budget and firms revenue forecasting. In the first half of 1998, most price increase after-effects became evident in the first quarter. Once more it became clear that the price adjustment would bring along a one-time acceleration of the price increase and therefore it would be impossible to forecast further trends. It is confirmed by the declining inflation over the next months. Interest rates increase starting in the second half of 1997 and the following shrinkage of credit opportunities has continued this year, too.
Economic environment suggest changes in profit statements and in cost structure.
The impact of the financial environment on the inflation rate has been reversed compared to the past, ie from promoting price increase into reducing. The Stabilization Reserve Fund as well as tighter supervision measures for commercial banks have had their impact, too. Liquidity restrictions dampening the loan growth, tougher regulatory requirements for banks and interest rate growth suggest easing demand pressure. The above is backed by statistics, revealing shrinking ending increase. A significant change has taken place in the growth rate differences of producer and consumer price indices.