Romania’s headline inflation remains steady at 5.3% y/y in May

By bne IntelliNews June 11, 2013

Romania’s headline inflation remained steady at 5.3% y/y in May for a third month in a row, the statistics office reported. The local currency’s nominal appreciation against the euro - of 1% m/m and 2.3% y/y, visibly supported the stability of the domestic consumer prices.

Nonetheless, at current exchange rates of RON 4.52 per euro, the local currency weakened by 3.7% from the May average quotations [RON 4.34]. If the exchange rate stabilises at the present level [RON 4.5 per euro], consumer prices will face visible upward pressures - starting with the prices of services, many of which are denominated in euro.

Consumer prices edged up moderately by 0.23% m/m in May, driven mainly by the seasonal rise in prices of fresh fruit and vegetables. Food prices increased by 0.77% m/m and their annual rise of 6.4%, slightly steeper than the average, might reflect the damages incurred by the greenhouses this year and possibly the lower grain crops last autumn.

On the opposite, the prices of non-food goods and services decreased marginally on the month in May – also helped by the 1% m/m strengthening of the currency. On the year, non-food prices increased by 5.5% y/y, visibly driven by the energy price liberalisation.

The prices of services increased by only 2.9% y/y, helped by the local currency’s appreciation.

Romania’s central bank cut its end-year inflation forecast to 3.2% y/y in its latest Quarterly Inflation Outlook released on May 8, down from 3.5% y/y forecasted in February. Actual inflation will retreat within the targeted band at an earlier moment, probably in September, the monetary authority has said.

 

Related Articles

Over 20,000 rally in Bucharest against plans to amend criminal legislation

More than 20,000 Romanians rallied on January 22 against the government’s plans to pardon some convicts and amend criminal legislation through emergency ordinances. The protest was attended by ... more

Romanian software producer Bitdefender takes over French peer Profil Technology

Romanian security technology company Bitdefender has acquired its French peer Profil Technology as part of its expansion strategy on the corporate segment.  The terms of the deal were not ... more

Czech CPI buys huge Central European retail portfolio

Czech real estate investor CPI Group has bought a large portfolio of Central European retail assets, local media reported on January 17. The investor, which has grown its holdings rapidly since ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss