No news on the inflation front

The “surprise” measures announced by authorities in order to strangle inflation are leaking more or less officially.

In essence, it is about pulling some very well known levers at a macroeconomic level. It remains to be seen whether there is enough consistency and political determination to enforce a set of measures to really rid the economy of the inflationary “virus” once and for all.

The inflationary rate over the first four months already reached 11.1%, while the state budget was built around 25% annual inflationary rate.

The set of measures destined to cut the inflation targets mainly the containment of arrears, monitoring the regulated and deregulated prices, the salary policy, as well as the trend of the exchange rate, government sources told Mediafax.

“We have the legal background to support us in monitoring the arrears, while, where the prices of public services and monopolies are concerned we’ll have a normative act drafted to include measures to ensure that they keep within this year’s inflationary target,” the quoted sources said.

The current level of arrears in the economy is of 76,000bn lei, 71,000bn of which are registered by the companies subordinated to the Ministry of Industry and Resources, while about 5,000bn lei are registered by those subordinated to the Transport Ministry.