EU entry may up Romania inflation rate

BUCHAREST (Reuters) – Romania’s inflation rate may fall at a slower pace over the few next years due to EU-related increases in administered prices, the country’s central bank governor, Mugur Isarescu, was quoted yesterday as saying. Romania, which hopes to join the European Union next year, is struggling to contain inflation driven primarily by booming domestic consumption plus high fuel and energy costs as it aligns its post-communist economy to EU standards. «The central bank’s proposal is to consolidate not only disinflation but lower inflation levels and implicitly (lower) rates,» Isarescu told BusinessWeek Romania in an interview. «It’s clear that disinflation may see a flattening of its curve as long as there are many delayed (adjustments) in administered prices.»