RO central bank revises upwards inflation outlook on supply-side issues prompted by the war in Ukraine
The war in Ukraine kept fueling supply-side issues in some key commodity markets, Romania’s National Bank (BNR) argues in its August 2022 Inflation report, estimating that the projected annual CPI inflation rate will reach 13.9% in December 2022, compared to 12.5% in the May 2022 Inflation Report.
The inflation will further ease to 7.5% in December 2023 against 6.7% envisaged in the May 2022 Inflation Report and 2.3% in June 2024 (mirroring strong base effects), the report also reads.
The annual adjusted CORE2 inflation rate will continue to rise towards the end of this year (11.4% in December 2022 versus 10.9% in the previous Report).
For December 2023, the annual core inflation rate stands 0.7pp higher at 5.5%, compared to 4.8% previously, before falling to 3.8% in 2024 Q2.
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