Romania's central bank raised its annual inflation forecast for this year and next, driven primarily by supply-side shocks amplified by the war in Ukraine, Governor Mugur Isarescu said on Tuesday.
The bank expects inflation at 13.9% in December, compared with a previous forecast of 12.5%. It sees inflation at 7.5% at end-2023, compared with a previous forecast of 6.7%. Isarescu said inflation would reach the mid-point of the bank's 1.5%-3.5% target band at 2.4% in June 2024. (Reporting by Luiza Ilie; Editing by Gergely Szakacs)