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The risk of a prolonged deflation period in Romania is very low

15 May 2015

The deflation risk rather has the chances of being a punctual, isolated event than a persistent phenomenon, and in the second half of the year we could even witness a revival of inflation in Romania.

Deflation might become a reality following a VAT reduction in a period of time with very low inflation but, most probably, it will be an isolated event. Inflation dropped heavily in 2014, through contagion with the more ample tendency in the euro zone, aggravated by the spectacular drop in oil prices in the second half of the year.

For more information, please see the Romanian version of the article, here.

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TRADEVILLE SA

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