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 Banca Transilvania becomes shareholder in Moldova’s Victoriabank

Romania’s Banca Transilvania (BT) has become a shareholder of Victoriabank, the third largest bank in the Republic of Moldova, with a total participation of over 66% alongside the European Bank for ... more

Romania signs €900mn contract for Piranha armoured vehicles

Romania’s government on January 12 signed a €900mn contract to buy 227 Piranha 8x8 armoured fighting vehicles (AFVs) from US producer General Dynamic, partly assembled at Uzina Mecanica Bucuresti ... more

Damen to lose out as Romanian PM says Mangalia shipyard will be nationalised

The Romanian government is committed to taking over a 51% stake in Mangalia shipyards from Daewoo and revive the yard by producing military ships, Prime Minister Mihai Tudose said on January 10 in an ... more