BNR maintains 2016 inflation prognosis at minus 0.4pct; for 2017, prognosis revised upwards, to 2.1pct

The National Bank of Romania (BNR) maintains its inflation estimation for this year at minus 0.4 percent, however it revises upwards the prognosis for next year, to 2.1 percent, from 2 percent, as estimated in August, according to the data of the Quarterly Report on Inflation, presented by BNR Governor Mugur Isarescu.

"For next year, we have a minor upwards revision, by 0.1 percentage points, to 2.1 percent based on the adjusted CORE 2 evolution," Isarescu explained.

According to him, without the impact of the first round of the VAT quota reduction, inflation would have stood at 1 percent this year and 2.4 percent next year.

Without taking into account the impact of eliminating the additional excise tax on fuel since 1 January 2017, inflation would reach 2.7 percent in 2017, the BNR Governor also added.