BNR adjusts year-end inflation projection downwards to 3.2 pct

The National Bank of Romania (BNR) revised downwards its year-end inflation projection to 3.2 percent, 0.3 percentage points less from the initial estimate, governor of the National Bank of Romania Mugur Isarescu said on Wednesday, at the presentation of the central bank's Quarterly Report on Inflation.

On the other hand, BNR revised its end-2014 inflation projection 0.1 percentage points upwards to 3.3 percent.

Referring to inflation in Q1 2013 Isarescu said that two external shocks have sent it outside the target band.

Speaking about the growth of inflation, the BNR governor mentioned among the elements of influence the adjustments operated on administered prices - particularly electricity tariffs, the increase in excise duties, the updating of the exchange rate used as reference for calculating the excise duties, as well as an increase in the international quotations of crude in January and February.

According to the National Statistics Institute, at the end of March the annual inflation rate has been 5.25 percent, keeping within BNR's forecast of 5.2% + / - 0.6%.

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