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Over 6% Rise Of GDP Keeps Romanian Inflation High – Ctrl Bk Chief Economist

A gross domestic product growth of over 6% will keep inflation high and it will be highly unlikely for the index to go below 3%, central bank chief economist Valentin Lazea said Monday.
Over 6% Rise Of GDP Keeps Romanian Inflation High – Ctrl Bk Chief Economist
15 sept. 2008, 15:06, English

Any increase of the gross domestic product over 6%, which is the Romanian economy’s potential, keeps inflation at high levels and it is highly unlikely for the index to fall below 3%,” Lazea said in a press conference Monday.

However, he added the central bank maintains its objective to adhere to the euro zone in 2014.

In the first half of the year, the country’s economic growth stood at 8.8%, driven by a 9.3% increase in the second quarter.

Romania’s consumer price index fell by 0.09 percentage points on the month in August, driven by a decrease in prices for services, bringing the annual inflation to 8.02%.

The central bank sees inflation at 6.6% at the end of this year and at 4.2% at the end of 2009, compared with a target of 2.8%-4.8% and 2.5%-4.5% for 2008, and the following year, respectively.