Central bank governor calls inflation in Romania an “insidious disease”

The inflation in Romania is a “insidious disease” as it has several causes and is difficult to control, central bank governor Mugur Isarescu said on Monday.

“If I have to give a definition now for you, if inflation is fiscal, monetary, structural? At our great attention, we will never succumb to the illusion that we are totally controlling it: it is an extremely insidious disease that can appear under a lot of forms,” Isarescu said.

Inflationary pressures in Romania, as well as the deficits, are largely structural and located at micro-level of the economy, according to the governor.

Isarescu indicates that administrative prices in Romania, which are normally considered predictable, are in reality very difficult to estimate.

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