Inflation back to 20 month high level

According to economic analysts, the key rate could rise by 0.5 percent, up to 9.5 percent, as early as next month, during the National Bank of Romania’s (BNR) board meeting.

The increase in consumer prices was brought about by a 2.12 percent rise in costs of services and a 0.8 percent increase in food prices.

The month-on-month inflation increase was of 0.86 percent, above the 0.7 percent estimated by analysts. Besides higher prices, the depreciation of the leu also contributed to this rise.

The central bank was forced to revise its inflation forecast for 2008 to 5.9 percent, from a previous 4.3 percent.