“Wage hikes, prompted by tensions on the labor market, will reflect in consumer prices sooner or later,” said central bank governor Mugur Isarescu at the presentation of the central bank’s inflation report for the first quarter.
Early February 2018, the central bank revised its inflation forecast upwards to 5% from 3.9% for the first two quarters of the year and to 3.5% for the end of the year, from a previous projection of 3.2%. It now sees December inflation at 3.6%, expecting it to hover around 5% in the second and third quarters and then easing in the fourth quarter.