Tuesday, August 5, 2008

AP: Romania bank chief predicts rising inflation

BUCHAREST, Romania: Romania's central bank chief said Monday that inflation will reach a higher than expected 6.6 percent this year.

Mugur Isarescu said rising salaries and productivity cuts were contributing to a rate higher than the 6 percent forecast by the National Bank of Romania for 2008.

Isarescu said a weakening national currency, the leu, could also fuel higher inflation next year. The bank also revised its inflation forecast for 2009 to 4.2 percent from 3.5 percent.

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