The Central Bank governor Mugur Isarescu presents, starting 11 PM the quarterly report on inflation. Two days ago, the administration board of the bank decided to maintain the inflation rate for 2012 at 3%. In the same time, it was decided that starting with 2013, the central bank should about a stationary inflation target at 2.5%. The targets will be discussed with the government.

Here are his most important declarations:

  • In this quarter, prices increased substantially due to VAT increase  
  • The determinants of the inflation: the increase of VAT rate: the impact is of 2.4 percentage points in this quarter
  • We estimate that the impact will be higher.  
  • A significant increase to volatile products, fruits and vegetables due to floods this summer  
  • It has a higher impact than the one estimated in the prices administered  
  • The appreciation of the national currency to the dollar helped us to temper inflation pressures  
  • All inflation measurements jumped. 
  • VAT increase by 5 percentage points is high 
  • We have a higher increase of prices without a VAT impact, in tobacco, fruits and vegetables, eggs and fuel the impact of foreign prices cannot be neglected and manifested started with July 2010 when it comes to fuels, I do not understand the logic of movements in internal fuels. 
  • I do not understand why it relates to the price of oil, to the dollar
  • Variations are too big and cannot be explained the labor market continues adjustments which are significant and do not limit to the private sector, but also the governmental sector the effect of the increase in thermal energy will be felt in November or December  
  • We trust that we will manage to bring inflation in the target we set I think that it will be a major political risk for Romania to do anything else than the fiscal discipline instituted by Europe  
  • We set the inflation for 2012 to 3% and we were cautious because there are pressures We did not meet with the government to set the target deficit We will have a transparent monetary policy which is compatible with the Maastricht treaty  
  • The multiannual stationary target will have to discussed with the government because it will comprise several modifications of relative prices. 
  • There are many relative prices in Romania which are below the EU ones
  • The main advantages for a multiannual stationary target: an increase of predictability of the monetary policy, the decrease of inflation persistence, the efficiency of the monetary policy due to the credibility gain, the decrease of inflation  
  • The attempts to stimulate economic increase through inflation are short term but we will have them for even shorter terms because we will be taxed at the foreign financing 
  • The law to decrease VAT for food products is unclear Next year the economy will grow We will adopt the euro in 2015