Inflation on the rise, NBR urges for calmness

Romania's central bank (BNR) revised significantly upwards its projection for the inflation trajectory over the next two years under the May Inflation Report published on May 12. Governor makes an appeal for calm as the economic conditions in Romania worsen.

It is said that exogenous elements (mainly the energy prices) are partially to blame. These are out of the monetary authority's control. This supposition is accurate as most production prices are linked to energy consumption. The CORE2 inflation is seen as peaking at around 11% at the end of Q2 this year (from 8.3% in March), 7pp more than envisaged under the previous Inflation Report issued in February.

In this alert, you will read more about the governor's statements and the updated forecasts.