For 2017, the central bank revised its inflation forecast to 2% from a previously expected 2.7%.
“Excluding the initial impact of cuts in the value-added tax, inflation would have reached 1% this year and 2.3% the next,” Isarescu said.
In 2018, the central bank expects inflation to exceed its 2.5% target.
Romania’s inflation rate grew to -0.7% in June from -3.5% in May.