Romania’s National Bank (BNR) has changed the prognosis for the inflation rate to 1.4% at the end of year, up by 0.3 percentage points compared to the previous estimation.

The central bank also estimates that the inflation rate may reach 3.4% by the end of 2017, surpassing BNR’s targeted level of 2.5%.

The period of negative inflation is only transitory, the BNR governor Mugur Isarescu said. The fiscal measures aimed at reducing the indirect taxes have affected the inflation rate.

The central bank wants to maintain stable prices and promote a sustainable economic growth, Isarescu said.

The annual inflation rate reached -1.87% in August last year, -1.1% in November, and -0.9% in December.

editor@romania-insider.com