Romania Ctrl Bk Revises Up ’09 Inflation Forecast At 4.5%

Isarescu said Romania was "on track" to meeting its inflation target for this year, after it missed both targets set for 2007 and 2008, respectively.

"The inflation decelerated in October as well; however, the consumer price index will probably be between 4.2% and 4.5% in the last two months of the year, due to a planned increase of excise duties (…). Our forecast is of 4.5%," Isarescu told a news conference.

Isarescu said the forecast on the 2010 annual inflation rate remains unchanged at 2.6%.

Romania's central bank set the inflation target at 4% in 2007 and at 3.8% last year, each with one percentage point variation band. For this year, the target was set at 3.5%, also with one percentage point variation band.

The country's consumer price index rose by 39 basis points on the month in September, but the annual inflation decelerated for the seventh consecutive month to 4.94%.

Romanian statistics institute INS is due to release the inflation report for October on November 11.

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