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Vasilescu (BNR): Inflation is twice the optimal level

3 October 2019

Romania is facing inflation twice as high as the level considered optimal for this indicator, and this does not depend on the statements of the authorities, Adrian Vasilescu, strategy consultant at the National Bank of Romania, said at a conference on Wednesday.

“Inflation strikes without regard to what the government says, what companies say, what the population wants. It strikes,” he said, according to Agerpres. He showed that, as of 2017, Romania is facing an inflation of 4% – 5%, when the ideal inflation is of 2%.

“In this world, from America to Japan, a convention has been reached that inflation should be 2%, considered optimal. No more, no less. 2% is like a glass of good wine after a meal, acting as a digestive. But just a glass, not a second glass. Here we are, since 2017, drinking two glasses at the table, because the ideal inflation should be 2%, and we have 4-5% continuously, month by month, per year, for 12 months,” Vasilescu said.

The National Bank of Romania (NBR) increased the inflation forecast to 4.2% by the end of this year and estimates an inflation of 3.3% for 2020.

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