Romania’s National Bank (BNR) has revised the annual inflation forecast at -0.3% for the end of this year and 0.7% for the end of next year, down by 0.5 percentage points, respectively by 1.2 pp compared to the previous estimations.

The inflation rate will be negative until May 2016, when it will return to positive, but remain at low values, according to BNR. It will get closer to the targeted inflation in the first quarter of 2017.

The inflation rate will be marked by the successive cuts of the VAT rate, said BNR Governor Mugur Isarescu.

The risks associated with this estimation are generated by developments in the external environment and uncertainties in the internal economic policies.

Romania’s central bank expects negative inflation in the next three quarters

Negative inflation rate in Romania after VAT cut on food

Romania’s Central Bank sees inflation at 0.2%

editor@romania-insider.com