Inflation below 1%

The inflationary rate for April will exceed 0.6%, following the natural gas price increase, but will not go above 1%, National Bank of Romania Governor Mugur Isarescu said. He added the statistical data so far pointed to a rise in consumer prices that was one percentage point below the disinflation programme anticipated by the central bank. Inflation in March was down to its seven-month low, and the 0.5% price hike was 0.1% lower than the February dynamic and 0.6% lower than in the corresponding period of 2003. The authorities target 9% inflation for this year, given that prices rose 14.1% in 2003. If calculated in relation to March 2003, the inflationary index is at 13.1%, one percentage point lower than at the end of last year. As for the trade balance deficit in the first three months, the Governor says it is nowhere near an alarming level, although imports progressed by 5%, because exports are getting closer to an annualised value of $20bn. “It is unfortunate to compare this year’s first quarter data with those last year when imports were very low, probably influenced by a statistics glitch, as well. What needs to be noted is that exports have come to a monthly level of 1.4-1.5bn euros,” Isarescu explained. ZF