The problem with inflation is that Romanians spend the most on food
Autor:
Ciprian Botea
05.05.2011
The excessive share of food in the consumer basket, which upset the National Bank's inflation forecast, is a problem that has been discussed by the National Statistics Institute (INS), but which has remained unsolved for the time being.
"This is a problem that has been discussed for a whole day
with the National Statistics Institute. But this is how things are,
we are working with this index. This is not an explanation, an
excuse, it's a reality based on figures," Isărescu said yesterday
when the quarterly report on inflation was presented.
The National Bank has revised its inflation forecast for this year upward, from 3.6% to 5.1%, expecting the prices of food and of fuels to be the main pressure factors. Annualised inflation climbed above 8% in March, with Isărescu saying only a good agricultural year would help the disinflation process.
Romania has recorded the second-biggest food price increase in the region, after Bulgaria. Moreover, an increase in the price of energy is set to follow in autumn, which will add inflationary pressure.