Florian Libocor: VAT increase will not go all to prices
ACTMedia - 7 July 2010 The increase of VAT by 5% will not go all to prices, considers Florian Libocor, the senior economist of BRD –Groupe Societe Generale, who thinks that by the end of the year inflation will be 5-6%.
He also said the VAT increase is 'inadequate to the context' but we should have convinced international partners we can adopt measures to cut deficit.'I don't think VAT increase will go so much to prices as there are many products which have remained with low VAT. The BNR inflation target will be exceeded but not by more than 1-2%. By the end of the year inflation will be between 5% and 6%, Libocor said at a seminar organized by Mediafax.
He also showed that the messages sent to the public should have been more correct otherwise we will get through new panic periods, as it happened last week. He added that the release of the IMF installment had no connection with the payment of salaries and pensions in the next period nor with the release of the installment from CE which is scheduled for September.In his turn, Lucian Anghel, the chief economist of BCR, said the exchange rate will stabilize between 4.1-4.3 lei/euro. Source: http://www.actmedia.eu