Wednesday, May 6, 2009

EC Revises Romania Inflation Forecast

The European Commission on Monday revised slightly upwards its forecast for Romania’s average inflation rate in 2009 to 5.8% from 5.7% it estimated in January.

“While inflationary pressures had eased in the second half of 2008 on the back of falling international commodity prices, inflation picked up again early 2009 caused primarily by a sharp leu depreciation,” EC said in its spring economic forecast.

EC sees lower inflation in Romania in 2009 and 2010 and expects it to enter within the target band set by the central bank by the end of 2009.

“In the course of 2009 and 2010 inflation is projected to decrease following lower wage growth and still low international commodity prices,” EC’s forecast says.

Romania’s inflation in 2008 stood at 6.3 per cent. 

At the same time, the European Commission revised upwards its forecast for unemployment to 8 per cent this year, from a 7 per cent forecast in January.

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