Romania ranks seventh in the EU in terms of annual inflation

Annual inflation in the euro-zone rose to 3.2 percent in January, compared to 3.1 percent in December, 2007, as consumer prices increased 0.4. At the EU level, annual inflation rose to 3.4 percent in January, from 3.2 percent in December, with a 0.2 percent monthly increase in consumer prices.

Countries with the highest inflation in the EU were Latvia (15.6 percent), Bulgaria (11.7 percent), Czech Republic (7.9 percent) and Hungary (7.4 percent). Lowest inflation levels were registered in the Netherlands (1.8 percent), the United Kingdom (2.2 percent), Germany and Portugal (2.9 percent).

The European Central Bank (ECB) has not yet cut its key rate, although several European states registered inflation levels way above ECB’s 2 percent target.
Analysts are predicting that the central bank will cut the key rate twice this year, from the current 4 percent, following the lead of the U.S. Federal Reserve, which applied several rate cuts last year and this year, down to the present 3 percent.

In Romania, the National Bank (BNR) rose the key rate several times, to 9 percent, and analysts foresee a new increase this spring, up to 9.5 percent.