But the general slowdown is being felt in all economies in the region, which suggests that, despite the ongoing benefits of the Single Market and the euro, the CEE business model has become vulnerable to shocks to international trade and financial conditions.
These forecasts may of course be superseded by subsequent events, and we will be seeing the latest forecast at the forthcoming MPC meeting. However, most forecasts project a significant slowdown in the pace of at which inflation is expected to fall later in the year or early next year.