Data-oriented systems and applications are at the centre of current developments of the World Wide Web. In these scenarios, assessing what policies propagate from the licenses of data sources to the output of a given data-intensive system is an important problem. Both policies and data flows can be described with Semantic Web languages. Although it is possible to define Policy Propagation Rules (PPR) by associating policies to data flow steps, this activity results in a huge number of rules to be stored and managed. In a recent paper, we introduced strategies for reducing the size of a PPR knowledge base by using an ontology of the possible relations between data objects, the Datanode ontology, and applying the (A)AAAA methodology, a knowledge engineering approach that exploits Formal Concept Analysis (FCA). In this article, we investigate whether this reasoning is feasible and how it can be performed. For this purpose, we study the impact of compressing a rule base associated with an inference mechanism on the performance of the reasoning process. Moreover, we report on an extension of the (A)AAAA methodology that includes a coherency check algorithm, that makes this reasoning possible. We show how this compression, in addition to being beneficial to the management of the knowledge base, also has a positive impact on the performance and resource requirements of the reasoning process for policy propagation.