FYROM inflation

WASHINGTON (Reuters) -The International Monetary Fund suggested on Wednesday the Former Yugoslav Republic of Macedonia’s (FYROM) biggest policy challenge in the short term is to contain rising inflation. «A key near-term policy challenge will be to contain inflation,» the IMF said after completing a third performance review of FYROM’s $82.2 million standby loan program. «The central bank’s interest rate increase is expected to help ensure that recent food and energy price pressures only have a temporary impact on inflation,» it added. The IMF said the government should be ready to also tighten fiscal policy in case inflation pressures persist or the current account deficit widens beyond expectations. «By strengthening central bank governance and independence, the new central bank law should also help safeguard price stability,» the fund added.