Romania’s National Bank (BNR) has maintained its inflation estimate for this year at -0.4%, but has revised up the prognosis for next year at 2.1% from 2% in August, according to data presented by the BNR governor Mugur Isarescu.

He also said that inflation would amount to 1% this year and 2.4% in 2017 if it weren’t for the impact of the VAT cut at the beginning of this year. Without taking into account the impact of removing the extra excise duty on fuel starting January 1, 2017, the inflation would reach 2.7% in 2017.

The uncertainties related to the making of next year’s budget, which include the laws already adopted or in discussion in the Parliament, are risks that may also push up consumer prices in 2017.

Meanwhile, the external context and the commodities prices will contribute to lowering the inflation rate, according to the BNR governor.

editor@romania-insider.com