Polish food and soft drink prices fell by 0.7% in the first two weeks of August on fruit and vegetable prices down 17% and 18.8% respectively. Farmers in several regions were hit by drought, which held the price fall in check as the cost of meat, sugar, flour and bread rose. Industry analysts estimate that prices will continue to fall during the rest of August, prompting speculation that inflation could ease back from its current 11.4% high.

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