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Monday, December 13, 2004

Inflation could hit 9.4% by yearend

The governor of the National Bank of Romania (BNR) Mugur Isarescu reiterated late last week the single digit inflation rate expected for the end of this year could hit 9.4%.

The index is slightly above the 9% level the BNR and the Romanian government set as their target for this year.

The fall months brought the highest growth in prices this year, when inflation climbed to 0.9% in September and to 1.2% in October.

The inflation rate halved from the yearly record of 1.2% in October to 0.6% at the end of November as tariffs for services diminished, the National Statistics Institute (INS) announced Friday.

The rate for November is below BNR estimates regarding the increase of consumer prices by 0.7-0.8% and well below banking analysts' expectations who forecast a level of 0.9%.

If consumer prices go up by 1% in December, the inflation rate for 2004 will be close to 9.7%.

For the entire 11 months this year, INS said the inflation rate was 8.6%, a level favoring single digit inflation for the overall year.

The cumulative inflation rate for the year between November 2003 and 2004 hit 9.9% - which is the first time since 1990 the index has gone below 10%.

Posted by Iulia Rasoiu : 12/13/2004 09:16:00 am