The National Bank of Romania (BNR) has raised its year-end inflation forecast to 13.9 percent and projects inflation at 7.5 percent at the end of 2023, shows data presented on Tuesday by central bank governor Mugur Isarescu.
In May 2022, the BNR said inflation would hit 12.5 percent at the end of this year and 6.7 percent in 2023.
According to the central bank, the CPI annual inflation rate will go flat during the third quarter and will take to a downward trend in Q4, provided that there is a gradual relaxation of wholesale energy and food markets, and bottlenecks along the global added value chains are progressively cleared, but also as a result of certain core effects following the strongly upward corrections of the energy price in 2021, before the implementation of the household support schemes.
According to BNR, the disinflationary trend is expected to temporarily stall in Q2 2023, once the electricity and gas price capping measures come out of force.
At the forecast horizon of June 2024, the projected inflation is 2.3 percent, within the inflation target range, amid a substantive core effect. AGERPRES