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6.57% inflation rate in 2007: well above target and Central Bank estimates

de Radu Big
Vineri, 11 ianuarie 2008, 15:11 English | Business

The annual inflation rate reached 6.57% in 2007, data at the National Statistics Institute (INS) reveal. The figure proves both the failure of reaching the target (4%) and the fault in the latest Central Bank revised prognosis on inflation, indicating a 5.7% level at the end of the year. Analysts say the same problem is likely to occur in 2008 as well.

Prices for immediate consumption goods grew in December only with an average 0.64%, compared to November, peaking in food products (0.9%) and services (0.7%). During the year, the same fields say the largest price growth: 9.14% for food and 8.55% for services.

Analysts say that the RON depreciation, the growing food prices and the pressure on salaries growth in an electoral year are issues that can make the 3.8% inflation target for this year difficult to achieve.

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