Lazea (BNR): decline in index of consumer prices below 3%, very unlikely
Valentin Lazea added that BNR maintains the objective of Romania’s joining the eurozone in 2014.
Prices fell in August 2008, when deflation of 0.09% was recorded, whereas the annual inflation (August 2007 – August 2008) fell to 8.02% versus 9.04% in July, according to the data published recently by the National Statistics Institute (INS).
The deflation recorded in August 2008 is the first monthly decline in prices in the past 2 years, after the deflation in August 2006.
Compared with July 2008, the prices of the foods rose 0.2%, the prices of non-food products remained at the same level and the tariffs of services fell 0.9%.
Versus August 2007, the price of foods rose 8.79%, the tariffs of services rose 6.99% and the prices of the non-food products rose 7.75%.
BNR vice-governor Cristian Popa estimated in early September it is possible for the inflation rate to reach 6.5% in 2008, namely almost double versus the inflation target of 3.8%.
At the start of August, BNR revised upwards by 0.6% the forecast on the 2008 inflation from 6 to 6.6%.