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Romania's Inflation Rate Will Stay Low In 2015 As Well
Romania’s inflation fell in 2014 to the lowest level in 30 years, amid the declining trend of oil prices, a good farming output and subdued domestic demand.
The annual inflation rate eased to 0.83% in December 2014, from 1.26% in the previous month, ad the trend continued in the first months of 2015 as well.
In 2014, a good agricultural output helped keep prices of food products low for the second year in the row, while the decline of oil prices on international markets led to a significant decline in fuel prices, despite a new tax on fuel introduced earlier in the year.
The inflation rate fell way below of the central bank's target range of 1.5%-3.5%.
The bank said the annual rate would likely stay at historical lows in the first part of this year, but will re-enter its target interval in the second and third quarters of 2015.
However, the bank lowered its year-end projection of the inflation rate to 2.1% in 2015, from 2.2% seen previously, but it may soon cut down its forecast after the government announced a reduction in the value-added tax rate for all food products to 9% from 24% starting June. Analysts already predicted the inflation may turn negative by the end of the year.