WASHINGTON: Romania’s National Bank (BNR) has revised downwards by 0.8 percentage point its inflation estimate for this year, from 1.8% to 0.6%. BNR Governor Mugur Isarescu presented the quarterly report on inflation on Tuesday, May 10. For next year, the central bank estimates an inflation of 2.7%, down compared to the February estimation of 3.4%.
The Government cut the general VAT rate from 24% to 20% at the beginning of the year. This cut came after the VAT rate for food was reduced to 9% last year. These tax cuts have led to an increase in consumption, and negative inflation starting June 2015.
