The prognosis commission kept inflation forecasts unchanged for 2017 and 2018, at 2.5% and 2.3%, respectively.
The forecast for the average euro-leu exchange rate was lowered for this year to RON4.45/euro from RON4.46/euro. For 2016, the exchange rate forecast was left unchanged RON4.44/euro.
Romanian consumer prices continued their decline in August, falling 0.5% on the month, taking the annual inflation rate to -1.9%, driven by a 7% drop in food prices.
The country’s annual inflation rate turned negative for the first time in more than 25 years back in June, as the country cut the value-added tax rate for food products to 9% from 24%.
At the beginning of August, the central bank revised its inflation forecast to -0.3% for 2015. The bank expects the inflation will return to positive territory by the end of next year, when the annual rate is seen at 0.7%.