Baluarte
06-24-2013, 08:16 AM
http://www.centralbanking.com/central-banking/research/2242922/national-bank-of-romania-struggles-to-keep-inflation-on-target
Romanian inflation remains outside target band despite negative output gap, with blame pointing to energy market developments among other factors
The National Bank of Romania's latest inflation report has put the recent rise in inflation down to a combination of factors including an upward adjustment of inflation expectations in the short run – despite a "significant" negative output gap.
The annual inflation rate pushed through the upper bound of the target band in Q3 2012, and has remained above the 4% upper bound ever since. That means the average annual inflation rate for 2012 slightly overshot its target of 3%. The target for 2013 is 2.5%.
Another important driver of inflation in Romania has been an increase in energy retail prices, driven by a combination of deregulation of the energy sector and subsidies for renewable energy being passed through to consumers.
Romanian inflation remains outside target band despite negative output gap, with blame pointing to energy market developments among other factors
The National Bank of Romania's latest inflation report has put the recent rise in inflation down to a combination of factors including an upward adjustment of inflation expectations in the short run – despite a "significant" negative output gap.
The annual inflation rate pushed through the upper bound of the target band in Q3 2012, and has remained above the 4% upper bound ever since. That means the average annual inflation rate for 2012 slightly overshot its target of 3%. The target for 2013 is 2.5%.
Another important driver of inflation in Romania has been an increase in energy retail prices, driven by a combination of deregulation of the energy sector and subsidies for renewable energy being passed through to consumers.