BCR: Increase in excise duty on fuel could add 0.4 pct to inflation rate

Georgeta Gheorghe 17/08/2017 | 12:18

The increase in excise duty on fuel could add about 0.4 percentage points to the inflation rate, and further could cause additional increases in electricity tariffs, but the impact of these factors could be offset by food price developments, especially those for vegetables and fruit, Horia Braun, chief economist at BCR said on Thursday.

“It remains to be seen, however, if an increase of fuel prices will roll on to the cost chain, given that, for instance, in the case of foodstuff, transport costs have a significant weight on the sales price,” Braun explained.

According to the BCR official, the institution has not revised the estimate on the inflation rate, which is expected to stand at 1.9 percent. “We attach to this projection rising risks of higher inflation by about 0.2-0.3 percentage points,” Braun warned. At the beginning of this month, BCR estimated the inflation rate at 1.9 percent, after earlier it was set at 1.6 percent, down by 0.1 percentage points.

At the end of 2018, the BCR forecasts an inflation rate of 3.2 percent, from 3.1 percent previously, and for the end of the first quarter of 2019, the inflation rate is estimated to stand at 3.5 percent.

Moreover, financial analysts expect an annual inflation rate of t 2.13 percent at the end of 2017 and 3.3 percent next year.

BR Magazine | Latest Issue

Download PDF or read online: November 2022 Issue | Business Review Magazine

The November 2022 issue of Business Review Magazine is now available in digital format, featuring the main cover story titled “Samsung Remains Top Consumer Tech Provider on Romanian Market.” Read
Georgeta Gheorghe | 29/11/2022 | 10:17

    You will receive a download link for the latest issue of Business Review Magazine in PDF format, based on the completion of the form below.

    I agree with the Privacy policy of business-review.eu
    I agree with the storage and handling of my data by business-review.eu
    Advertisement Advertisement
    Close ×

    We use cookies for keeping our website reliable and secure, personalising content and ads, providing social media features and to analyse how our website is used.

    Accept & continue