Romania’s National Bank cuts inflation estimate

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. Romania records highest negative inflation in EU in March Retail trade turnover, up 19% in Romania in the first quarter editor@romania-insider.com