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March 29, 2023

BNR: September inflation shock will be felt until August 2013

The inflationist shock of September, when the monthly rate was 1.8 pc, will be felt until August 2013, and this evolution determined the Central Bank (BNR) to revise the inflation target for 2012, the head of BNR’s Department for Statistics, Constantin Chirca, announced yesterday during an EU-Cofile seminar organised by BNR jointly with Alpha Bank and the Romanian Banking Association (ARB), Money.ro reports.Under normal circumstances, in the absence of strong inflationist pressures that could result from the devaluation of the RON or the increase by the state of administered prices (such as those of public utilities), inflation should substantially decrease in September 2013, against the background of the so-called ‘base effect,’ respectively because in the calculation of annual inflation, the prices of September 2013 will be compared to those of September 2012, which represented a peak, according to gandul.info. In September, the annual rate of inflation advanced to 5.33 pc, the maximum of this year, driven by the 2.3 pc average increase of food products compared to the previous month. Representatives of the agricultural industry explained, ever since the beginning of summer, that the long draught that hit some regions will increase food prices. In September, against August, vegetables were almost 10 pc more expensive, as potatoes were the “champions,” with an average price increase of 27 pc. As a whole, during just one month, prices advanced by almost 1.2 pc. In October, annual inflation rate dropped under 5 pc, i.e. to 4.96 pc.The BNR official explained that seven groups of food products, which account for 6 pc of the total consumer prices index (IPC), had a contribution of 5.92 pc in the total average increase of consumer prices.The National Statistics Institute (INS) will possibly calculate in premiere, starting with 2013, the consumer prices index also based on national accounts, not only based on family budgets, which might decrease the share of food expenses and increase that of services, Constantin Chirca added, quoted by capital.ro. “It is very likely that, as of 2013, the INS will also take into account, when calculating the inflation rate, the cash flows in national accounts, not only the budgets of families,” Chirca explained.In his turn, Adrian Vasilescu, advisor of BNR Governor Mugur Isarescu, announced that the Central Bank will analyse the letter received from ARB regarding the new Civil Procedure Code, which might also have effect upon bank contracts. Under the new Code, in the case of a bank contract, if a judge rules that the contract includes and abusive clause the bank could be forced to modify all existing contracts.

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