Romania's Central Bank BNR revised upward its forecast on the annual inflation to 3.6 percent at the end of 2011, from 3.4 percent previously, Romanian Central Bank governor Mugur Isarescu (in picture) said Monday. For 2012, the bank forecasts an annual rate of 3.2 percent, Isarescu said at the presentation of the quarterly inflation report.

Romanian inflation came in at 7.96 percent at the end of 2010, above the central bank's upper target of 4.5 percent, largely due to a higher sales tax. "The inflation in the fourth quarter was in line with expectations (…), mainly due to the higher value added tax rate," Isarescu told the news conference. He said further factors that blocked the disinflation process were higher food and fuel prices, as well as a stronger US dollar against both the euro and the Romanian leu.

Mediafax