Romanian Ctrl Bank Says Consumer Prices Exposed To Outside Pressure

Speaking at the presentation of the quarterly inflation report, Isarescu said domestic pressures are rather weak, as local production and the existent stocks are currently at high levels.

Additionally, domestic demand for food products continues to decline, capping producers’ inflationary expectations, he said.

„We think the effects (on food prices) will be rather limited. There are absolutely no expectations for a swift increase in food prices and the available data dismiss such a possibility as well,” Isarescu told reporters.

The central bank’s head quoted a recent poll among agriculture producers, saying the responses indicate a decrease in the producer price index in the coming period.

However, fuel prices are likely to experience upward pressure, due to higher prices of crude oil forecast on international markets.

„The inflationary pressures are bound to remain at tolerable levels, excepting possible developments that would point to major, open conflicts,” Isarescu said.