Romanian Prime Minister sees inflation slowing to 4% in 2009

Romania's inflation is seen slowing in 2009 to a year-end rate of 4%, Prime Minister Calin Popescu Tariceanu said on Tuesday.

The Romanian consumer price inflation fell 0.09% in August, as Romania reported deflation for the second time since the fall of communism in 1990. Annual inflation slowed to 8.02% in August, driven by higher prices for services, the National Statistics Institute (INS) said at the beginning of September.

Romanian analysts see annual inflation at 7-7.1% in September.

At the beginning of August, the central bank has revised up the inflation forecast for the end of the year to 6.6%, from 6%, but said recently that the bank might revise downward the inflation forecast in the next board session.

The central bank has set an inflation target of 2.8%-4.8% for the end of the year and 2.5%-4.5% for 2009.