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Romanian Ctrl Bk Gov Reiterates ’08 CPI Forecast At 5%-6%

Romania’s central bank governor Mugur Isarescu reiterated Wednesday that he expects the country’s resurgent inflation to fall between 5%-6% by yearend, above the central bank’s target range for this year.
Romanian Ctrl Bk Gov Reiterates '08 CPI Forecast At 5%-6%
09 apr. 2008, 11:22, English

“I am cautiously optimistic about this year’s inflation, which will most likely go down to 5%-6%, somewhat near the bank’s target range,” Isarescu said.

Isarescu has repeatedly said he expects inflation to start backing down in the summer and that the central bank’s top priority is to lower inflation in the second half of the year.

For 2008, the Romanian Central Bank has set an inflation target of 2.8%-4.8%, but it said in February it expects inflation to be 5.9% by the year-end due to persistent inflationary shocks.

Consumer price inflation exceeded the central bank’s target band in 2007 and spiked to 6.57% at the end of last year, largely due to significant rises in food and services prices.

In February, the country’s consumer price index rose 8%, its highest level since March 2006. It is expected to peak at 8.3% in March.