The Romanian National Bank (BNR) has reviewed its inflation prognosis for the end of the year, from 3.9% as forecast in August to 5.7%, BNR Governor, Mugur Isarescu said on Monday, quoted by Romanian news agency NewsIn. The new target exceeds the previous upper margin of the 4% plus/minus 1 percentage point target by 0.7%.
Isarescu added that the annual inflation rose to 6.03% in September and the tendency was expected to continue in the following months because of the high pace of price increases in August and September.
Higher prices were stimulated by the Romanian currency depreciation that raised import prices.
The Bank has previously estimated an inflation target of 4% in 2007. In the previous inflation report in August this year, the Bank changed the inflation forecast from 3.7% to 3.9%.