Romania's National Bank (BNR) Governor Mugur Isarescu presented the quarterly report on inflation on Thursday. He said the inflation target for end of 2010 was revised slightly upwards from 3.5% to 3.7% and that the target for end of 2011 may be "anywhere from 1 to 5%".
He said price rises in the second and third quarters of 2009 were relatively small. The central bank's prognosis is an inflation of about 4.2% towards the end of summer, he said, adding that the performance may be significantly better in autumn.
He said that the recession has shown not only its teeth but also correction effects on the labor market as the number of employees started going down and salary raises were moderated.
And he said that reaching the deficit target when having late payments and cut investment was the worst option.