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The problem with inflation is that Romanians spend the most on food

Autor: Ciprian Botea

05.05.2011, 23:37 137

The excessive share of food in the consumer basket, which upsetthe National Bank's inflation forecast, is a problem that has beendiscussed by the National Statistics Institute (INS), but which hasremained unsolved for the time being.

"This is a problem that has been discussed for a whole daywith the National Statistics Institute. But this is how things are,we are working with this index. This is not an explanation, anexcuse, it's a reality based on figures," Isărescu said yesterdaywhen the quarterly report on inflation was presented.

The National Bank has revised its inflation forecast for thisyear upward, from 3.6% to 5.1%, expecting the prices of food and offuels to be the main pressure factors. Annualised inflation climbedabove 8% in March, with Isărescu saying only a good agriculturalyear would help the disinflation process.

Romania has recorded the second-biggest food price increase inthe region, after Bulgaria. Moreover, an increase in the price ofenergy is set to follow in autumn, which will add inflationarypressure.

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