BUCHAREST, Feb. 17 (Xinhua) -- The National Bank of Romania (BNR) has raised its inflation forecast for the end of 2025 to 3.8 percent, up from the previously estimated 3.5 percent, and expects it to reach 3.1 percent by December 2026, Governor Mugur Isarescu announced Monday.
According to the BNR's latest inflation report, inflation is expected to fluctuate in early 2025 before gradually declining, returning to the target range in the first quarter of 2026.
The upward revision for 2025 is attributed to rising prices for tobacco and administered services, as well as persistent core inflation. However, inflationary pressures are expected to ease due to lower import costs and a slowdown in demand amid fiscal consolidation measures.
While inflation is now projected to be higher than previously estimated in early 2025, the central bank anticipates a sharper decline in 2026.
