The Romanian National Bank-BNR forecasts an inflation rate of under 5% in 2006 and said it expected rates of 4% plus/minus one point and 3,8% in 2007 and 2008 respectively.
BNR governor Mugur Isarescu said on Tuesday he believed there still were potential risks related to inflation, including possibly more relaxed fiscal and salary policies. He said restrictions in the currency policies applied by the BNR had a main contribution to dropping inflation.
According to Isarescu, the disinflation pace accelerated in the third quarter of the year, with an annual inflation rate of 5,48% in September and to 4,8% in October.
He said natural gas price increases in November and higher electricity prices in December would not affect the inflation target.
