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4.3% inflation rate challenged by wage growth

Joi, 15 februarie 2007, 0:00

The average inflation rate for 2007 is estimated at some 4.3%, the Central Bank Governor, Mugur Isarescu, said on Thursday. The salaries' growth represents the highest inflation risk this year, added Isarescu, thus reopening the series of warning he addressed to the Government.
Isarescu's warning comes the same day president Traian Basescu discussed the same problem with the Romanian Academic Society, where the president said that the labor force will continue to emigrate towards the West, unless salaries grow.

The current account deficit, on the other hand, increased 46% in 2006, compared to 2005, up to 9.97 billion euros.

The Central Bank Governor also presented three scenarios for the average inflation rate, all depending on the December 2007 inflation rate. For a December with 4 to 5% rate, the average annual inflation rate will range from 4.2 to 4.6%.

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