Romania's inflation rate to remain in negative band this year, says BNR updated forecast

Romania’s inflation rate to remain in negative band this year, says BNR updated forecast

Newsroom 04/08/2016 | 19:08

The National Bank of Romania (BNR) has revised the inflation forecast on a downward trend for the end of 2016 and for 2017. This rate will remain in negative territory until the end of this year, taking into account that in May the inflation rate was estimated at 0.6 percent until the end of 2016, said the governor of BNR, Mugur Isarescu, according to Agerpres.

„The main scenario reveals a projected path of annual inflation rate significantly lower than previously forecasted, in the context of persistance of a low level of inflation at global and regional level, that affects the main inflation behavior, the dynamics of volatile prices and the administrated prices. The new forecast keeps the increasing trend, in the context of inflation pressure of the aggregated demand surplus and the unitary costs with the workforce. Thus, the forecasted path of the annual inflation rate registers negative values until the end of 2016, and then will come back within the targeted interval during 2017, maintaining under the central point of the target at the end of 2017, ” said Isarescu.

In the inflation report from May, BNR estimated an inflation of 0.6 percent for the end of 2016 and 2.7 percent until the end of 2017.