The prediction for annual inflation, "growing"
The National Bank of Romania estimates for this year an inflation of 5.1 percent, well above the target of 3 percent.
Articol de Sorin Moţatu, 08 Noiembrie 2012, 11:04
Governor Isarescu announced that the central bank revised with almost two percent the inflation forecast for this year from 3.2 to 5.1 percent.
According to Inflation Report, on Wednesday, the annual inflation rate increase is due to rising prices, especially on food.
"A very negative role for the annual inflation was from volatile prices: vegetables, fruits, eggs. Another contributing factor in inflation, from the variation band, is the depreciation, since the summer months, of our currency, in nominal terms, compared to euro and dollar.
"We had further adjustments to some administered prices of electricity, natural gas, municipal services and land relative international prices of crude oil upward", says Mugur Isarescu.
BNR governor Mugur Isarescu also said that one of the risks that this forecast of the inflation rate to be overcome are the scheduled elections in December, which may increase other risks in the medium term.
Moreover, the central bank increased also the inflation forecast for next year from 3 to 3.5 percent.
The inflation accelerated in September, its annual rate increasing to the level of 5.33 percent from 3.88 percent in August, mainly due to the adverse effects exerted by the evolution of domestic prices and international food.
The average increase in consumer prices in the 12 months remained near the average in the European Union, being 3 percent in September 2012.
Translated by Alexandra-Diana Mircea
MTTLC, Bucharest University
