Rains will help the East Europe to overcome inflation
Rainy weather has appeared on a hand to the Central Banks of some the countries of the East Europe as it has favorably affected the agricultural crops, which are grown up in these countries.
Good harvests should help to the Central Bank to cope with inflation, which is on record-breaking high marks practically in all developed and developing countries. In experts’ opinion, this year crops in all Eastern European countries will grow on 10-70 % and though it will not help to lower general rate of inflation, but it will considerably facilitate consumers life.
Of course, inflation will not sharply decrease. But unexpected good harvests of agricultural crops will help to weaken slightly inflationary pressure. Meantime a proceeding growth of inflation created huge quantity of problems to the Eastern European Central Bank as it compelled them to trace a rate of inflation constantly. So, since October 2007, the Central Bank of Romania has already raised the rate of refinancing on 275 basic items up to 9,75 %. And the majority of experts down to recent time were assured, that the bank will continue a cycle of discount rate increase.
However, May data on inflation have placed all in the places. So, in May in monthly calculation inflation has made 0,5 %, in comparison with 1 % in April. Annual inflation in this country has decreased from 8,6 % in April to 8,5 % in May, though it is considerably above the purpose(2,8-4,2 %), declared by the Central Bank. However, it is expected, that in August the rate of inflation will considerably decrease, in many respects owing to good harvests
