Romania's Inflation Stays Steady

The National Institute for Statistics, or INS, also said that the consumer price index rose 0.93% month-on-month in November, due to higher prices for food and services.

Food prices rose by 1.17% in November, while prices for services were up 1.21%.

Non-food prices increased by 0.61% during the month.

The central bank has raised its annual inflation forecast to 5.7% in December from a previous prediction of 3.9%, citing higher food prices due to drought in the summer and a worsening outlook for Romania’s currency, the leu.

Romania’s Prognosis Commission sees inflation at 6% at the end of 2007 and 4.5% next year.

The central bank and analysts have repeatedly urged Prime Minister Calin Popescu Tariceanu’s centrist government to tighten fiscal policies and keep wage growth in line with productivity to help contain inflation and boost economic competitiveness.