Romanian consumer prices fell 0.29% in June from a month earlier, pushed down by cheaper food items, while the annual inflation eased to 7.93%, after it hit a 33-month high at 8.41% in May.
ING’s new forecast for the year-end inflation factors in a possible decision of the authorities in Bucharest to cancel heat subsidies this fall, the lender said in a report.
The year-end inflation could reach 4.2% in the absence of such a decision, ING said.
For July, ING estimates an annual rate of 5.2%, as the effects of a 5 percentage-point increase in the value added tax enforced last year are expected to fade.