Romania’s headline inflation eases to 3.7% y/y in August

By bne IntelliNews September 12, 2013

Romania’s consumer price inflation eased to 3.7% y/y in August from 4.4% y/y in July and 5.4% y/y in June, the statistics office INS reported. The overall price stabilisation was driven by a significant 3.1% decline in food prices over the past three months [Jun-Aug]. Consumer prices decreased by 0.5% over the period despite the rise in non-food prices and services’ fees.

Food prices increased by only 2.4% y/y in August, driven by abundant vegetables and fruit crops this year, while the non-food goods advanced by 5.0% y/y on adjustments of regulated energy prices, and the services’ fees increased by just 3.2% y/y remaining constrained by the subdued demand [disposable incomes] and stable exchange rate [many fees are defined in euro].

Romania’s central bank sees the end-year headline inflation at 3.1% y/y and also forecasts that the annual inflation would remain within the 1.5%-3.5% target band for the two-year horizon envisaged, its latest Quarterly Inflation Report dated August shows. It is the second consecutive downward adjustment of the forecasts issued on a quarterly basis by the central bank.

Related Articles

Romania's Transgaz to open branch in Moldova to speed up pipeline construction

Romanian natural gas transport company Transgaz will soon open an office in Chisinau to speed up the construction of Ungheni-Chisinau pipeline that will bring Romanian gas to Moldova’s main ... more

Cummins reportedly to relocate production from UK to Romania after Brexit

Global engine and generators manufacturer Cummins plans to relocate production from the UK to Craiova, in southwest Romania, after Brexit, Craiova mayor ... more

Nato boosts Black Sea presence with new Romanian military force

Nato launched a new multinational force in Craiova, southern Romania, on October 9, as part of its Forward presence in the southeastern alliance states.  The move is aimed at countering ... more

Dismiss