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Romania Ctrl Bk Ups Year-End CPI Forecast To 8.2% – Sources

Romania's central bank has revised upward its forecast on year-end inflation to 8.2% in 2010 from a previous 7.8%, people familiar with the matter told MEDIAFAX.
Romania Ctrl Bk Ups Year-End CPI Forecast To 8.2% - Sources
Bogdan NeaguFlorentina Dragu
03 nov. 2010, 15:07, English

The new forecast will be officially announced at a news conference on the third-quarter inflation report due Thursday, the sources said.

The central bank revised upward its year-end inflation target to 7.8% in 2010 from 3.7% previously, following the introduction in July of a 5 percentage point increase in the sales tax to 24%.

In September, the annual rate accelerated to a two-year peak of 7.7%, driven by the higher tax level.

The central bank was unable to reach its year-end inflation targets for the past three years.

According to estimates of the International Monetary Fund, the annual rate could peak slightly above 8% in December this year, before easing toward the central bank’s band of 3% plus/minus one percentage point in 2011.