The central bank expects the inflation rate to reach 16.3% at the end of 2022, a significant increase over its previous forecast, according to a presentation made by central bank governor Mugur Isarescu.
In October, the annual inflation rate was 15.3%, a tad lower than 15.9% in the previous month.
However, the bank expects consumer prices to continue to rise over the following months, amid still-high energy and food prices. The central bank raised its inflation forecast to an annual rate of 16.3% in December 2022 from 13.9% in its August Inflation report.
For 2023, the bank expects an annual inflation rate of 11.2%, which is considerably higher than the 7.5% estimated in August.
Next year, the price increases are expected to slow down as supply shocks and demand pressures are seen less frequently. However, the inflation rate will enter single-digit territory only in the first months of 2024, but the deceleration is expected to be quick on favourable base effects.
(Bogdan Neagu | EURACTIV.ro)
Source: euractiv.com
