The last years displayed a good track record in consolidating the macroeconomic stability while lowering inflation. At an average rate of about 5% per year, GDP growth was among the highest in the region with a peak of 8.3% reached in 2004. For 2005, the GDP is expected to grow with almost 4.5% strongly influenced by the 12.6% decrease in agricultural output as the effect of the floods upon economy, Romania having an economy depending on agriculture – a non-restructured sector strongly influenced by the natural disasters. In 2005, consumer prices rose by 8.6 percent, overlapping 7.5% inflation target, given that both administered prices and volatile prices recorded annual changes well above the average; behind these developments stood mainly the price adjustments for utilities, as well as the unfavorable impact of some incidental factors like the floods.