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The Senate president, PNL (National Liberal Party) leader Florin Citu, declared that he is worried about the inflation rate, because an increase would mean "a tax on poverty" for Romanians with low income, and at a value of 10% "things would get out of control".
"We will see the estimates from the Central bank. I hope that it does not go over 10%, because then things would get out of control and it would be very complicated to bring inflation back to 2.5% without major costs to the economy. (...) There are talks regarding inflation, these are the worries that I have. At this moment the inflation rate is way above the target. The target of the Central bank, you all know well, is 2.5. It is way beyond that target. The question is that if it continues its upward trend for a long period of time, what would the solutions be. And here, I repeat, they are in Government and at the National Bank of Romania, but if this problem will not get fixed soon we will have to expect, especially in the public sector, that people will come with demands for salary increases," Citu said in the Senate on Wednesday.
He explained that for a high inflation "purchasing power is eroded" and it is the duty of the state institutions, that have attributes in tempering inflation, to come up with solutions, Agerpres.ro informs.
"In the end, there is a question that economists have been asking themselves, if you can have high inflation, low interest rates and stable exchange rate at the same time. If not, where do you release? But, the solutions, I repeat, I am waiting for them in the coalition. I said it before in the coalition that I am worried about the inflation rate, because that would mean, for low-income Romanians, that there will be a poverty tax, but it affects everyone," Citu added.
