Inflation lower than anticipated by NBR

The 1.7% increase in consumer prices in the first two months of the year is below the level anticipated by the National Bank of Romania, NBR Governor Mugur Isarescu said. He explained NBR was maintaining its 9% target for the full-year inflation, reminding that the success in battling prices was basically up to the application of an economic policy mix. As for NBR’s responsibility, the governor specified the monetary policy would focus on the disinflation process more than it did in the previous years. Isarescu has recently said the main obstacles in attaining the inflationary target would be the salary increase beyond productivity and the quasi-fiscal deficit growth. The central bank’s expectations could target new price changes, as a result of reform in the energy and in the public utilities sector. ZF