The National Bank of Romania (BNR) raised its inflation forecast for the end of this year to 3 pct and estimates an inflation of 3.1 for the end of 2020, BNR governor Mugur Isarescu announced on Monday, as he presented the central bank's Quarterly Inflation Report.
In November 2018 the BNR was estimating an inflation of 2.9 pct for the end of this year and of 3.2 pct for 2020.
According to the National Bank of Romania, the annual inflation rate will trend downwards till Q3 2019 (to 2.4 pct) on account of exogenous components and of the consumer basket.
Subsequently, inflation will reposition and stay in the upper half of the target band, as the favorable effects of fuel and citrus price cuts at the end of 2018 will fade out, but also due to the rising contribution of the basic inflation.
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