Annual inflation reaches three-year high in July

Higher gas and electricity prices and excise taxes have led to a new peak in annual inflation in July, up to 9.2-9.4 percent, the highest level in the past three years, according to economic analysts.

In July 2005, the National Institute of Statistics (INS) announced 9.3 percent annual inflation.

Analysts say that the forecast by Romania’s National Bank (BNR) of 6.6 percent for 2008 is plausible. The central bank revised its inflation prognosis upwards, by 0.6 percentage points, from the initial 6 percent, due to higher prices.

However, the appreciation of the leu is likely to diminish the impact of higher prices, Raiffeisen Bank Romania’s Chief Economist, Ionut Dumitru, told NewsIn.