Romanian central bank cuts 2011 inflation rate to 4.6 percent, down from 5.1 percent

Newsroom 08/08/2011 | 12:58

Romania’s central bank expects annual inflation to slow down to 4.6 percent, according to Agerpres newswire. The central bank had previously estimated a 5.1 percent annual inflation at the end of 2011. The annual inflation for 2012 will be 3.5 percent, down from a previous estimate of 3.6 percent.

Central bank governor, Mugur Isarescu, stated that food products have undergone a serious price correction, after four months of continuous growth, which is a clear signal that inflationist pressures on agriculture products have reduced. Oil prices are on a slight growth trajectory. According to Isarescu, Romania has left the recession area, as the production in the manufacturing industry has reached pre-crisis levels.

Isarescu added that a slight recovery has been registered in the retail trade. However, the volume of loans to customers is still low, as customers are reimbursing current loans or applying for loan refinancing.