The National Bank of Romania: The annual inflation rate has remained constant

The National Bank of Romania explains interest rate maintenance and the reason why the annual inflation rate has remained constant. The decision on maintaining the monetary policy rate at 2.50% per year was taken in the context of the annual inflation rate falling in June, but warns that the main associated risks the inflation outlook stems from the future conduct of fiscal policy.

“The annual consumer price index inflation rate fell to 3.8% in June, from 4.1% in May, slightly below the forecast level, but above the target range. The evolution was due to a steady drop in vegetable prices and Compared to the end of the first quarter, when it stood at 4.03%, the annual rate of inflation was reduced exclusively due to the evolution in June “, the statement said.

According to the NBR press release, “in addition to the influence of the new tax in the telecommunications sector and the increase of international prices of some agri-food products, the advance shows rising inflationary pressures on the demand side and the wage costs, together with the upward adjustments of the short term inflationary expectations.