WARSAW — Premier Zbigniew Messner said Saturday that planned price increases in Poland for the coming year will be scaled down after being rejected in last week's national referendum.
"The government now has to alleviate the sharpness of the (economic) reform program," Messner told a meeting of Parliament.
The planned price increases, which would have been as high as 110% for staple food items and as much as 200% for fuel and housing costs, were the central part of a major economic reform plan aimed at reducing government subsidies and bringing prices more in line with the law of supply and demand.
Messner said that the hikes on food items will be spread over the next three years but that the increases in fuel and rent prices will be implemented in 1988.
Messner said that meat rationing--which the government uses to assure low-cost meat supplies to the population--will continue through the next year even though "this will have a bad effect on efforts to increase production of meat."