Romania’s National Bank (BNR) estimates an inflation of -3% for the end of March 2016, with an uncertainty interval of +/-0.6%.

The inflation stayed negative due to the cut in the general VAT rate at the beginning of the year. Had the VAT reduction not been applied, the inflation would have reached 1.3% at the end of the first half of this year.

The central bank’s yearly inflation target is around 2.5% with a variation of +/-1 percentage points. BNR has estimated an inflation of 1.4% for the end of the year.

The inflation could reach 3.4% at the end of 2017, according to BNR.

editor@romania-insider.com