Romanian Fin Min Sees ‘08 Yearend CPI At 5.0%-5.5% YY

Romania’s consumer price index will stand at 5.0% - 5.5% in 2008, exceeding the target of 2.8%-4.8% set by the Romanian central bank, the Romanian Finance Minister Varujan Vosganian said at a Euromoney conference in Vienna.

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Vosganian said Romania’s economic growth would reach 6.5% in 2008, while its current account deficit is seen widening to 13.6% of gross domestic product this year.

Romania’s consumer price inflation exceeded the central bank's target band of 3%-5% in 2007, accelerating to 6.57% at the end of December, due to significant growth in food and services prices.

For 2008, the central bank has set an inflation target of 2.8%-4.8%. However, Romanian analysts say prices might see double-digit growth this year, if Romania’s farming output is again hit by drought or floods.

The Romanian Forecasting Commission predicted the country’s 2008 gross domestic product growth will stand at 6.5% and its current account deficit will reach 13.6% of GDP this year.

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