National Central bank Governor Mugur Isarescu: inflation debates were vulgarized / we need technical debates

A debate on the way inflation is calculated started at the National Central Bank headquarters, together with the President of the National Statistics Institute, chief economists and other guests. Debates were open by Mugur Isarescu who explained why such debates are necessary. Follow live the most important declarations.

President of the National Statistics Institute, Vergil Voineagu

• We need such debates
• The Institute offers information related to the evolution of life conditions. The evolution of the inflation has two conotations: one we all feel as consumers and one resulting from the complicated mechanism of the index
• in 2010 modifications will be operated in the consumption spending structure
• the Institute takes into account essential criteria like adapting the number of signifying categories in the consumption basket
• For the first time, I want to announce that Romania will be a member of the Statistics Committee of the OECD

Economist Napoleon Pop

• The real estate index will be included in the inflation calculus
• There are differences between the real inflation and the National Central Bank inflation. The deviasions are due to the state’s interventions in various structures. Even though the intention is good, the effects are bad as they deviate inflation.
• It is probable that we have some monopolies. Even if we talk about a free market, there are price monopolies that do not let the free market work.
• The monetary policy is left to monitor price categories

National Statistics Institute, Cristina Mali

• We need to undermine that inflation is not an index of the costs of life. The costs of life is determined  by looking at two different product basquets.