Tuesday, April 15, 2008

Romania Prices at Two-Year High

BalkanInsight.com

14 April 2008
Bucharest _ Annual inflation in Romania has risen 8.67% since March 2007 and stands at its highest level in 26 months.

This is according to the latest National Statistics Institute figures revealed on Monday.

The prices climbed 0.67% in March and 2.25%. in the first four months of the year.

Compared to February, last month the food prices grew 0.55%, services were 0.92% more expensive, while the prices of other goods rose by 0.67%.

Experts say these level of prices will also be maintained in April and May.

A week ago, the deputy governor of the Romanian National Bank (BNR), Cristian Popa, warned that inflation would rise significantly in March, but it would lower in the second half of the year.

BNR has a target inflation of 3.8% in 2008 but Popa said it will rise by up to 5.9% at the end of the year. For 2009, the central bank aims to have a 3.9% inflation rate.

Last year, the inflation rate was 6.57%, caused by rising food and fuel prices and by a poor harvest, due to a severe summer drought.

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