Romania's central bank is concerned about a potential rise in inflation above 6 percent at the end of this year, but governor Mugur Isarescu said on Saturday the bank does not aim to change the 2008 target.
The bank upped its annual inflation forecast earlier this month to 5.7 percent from the previous 3.9 for December 2007, citing higher food prices and a worsening outlook for the leu currency.
Asked in a televised interview if there is nervousness in the bank that inflation could exceed 6 percent inflation in December, above the 3-5 percent goal, Isarescu said: "Of course there is ... we take this very seriously, this is our essential goal," Isarescu told private television channel Realitatea TV.
Isarescu reiterated that one of the main risks was represented by wage increases. Wages are being driven up by emigration, leaving a shortage of labour within Romania.
The central bank and international observers have repeatedly urged the centrist minority government to tighten fiscal and wage policies to reign in demand and boost economic productivity and competitiveness.
Aseked if the bank intends to change next year's target of 2.8-4.8 percent, or the band, he said: "No, we don't want to amend that and we do believe that we have chances."
The bank, which raised its benchmark interest rate by 50 basis points to 7.5 percent last month, also upped the European Union newcomer's 2008 inflation forecast to 4.3 percent from 3.7 percent previously.
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