Annual inflation rate – 1.05 pc in February, 2014


Food and non-food prices went up by 0.3 percent each, compared to January, and service fees went up by 0.47 percent, according to INS.

Consumer prices went up by 0.3 percent in February compared to January and by 1.05 percent compared to February, 2013, the National Institute of Statistics (INS) announced yesterday. Food and non-food prices went up by 0.3 percent each compared to January and service fees went up by 0.5 percent. The steepest rise in food prices was reported in the vegetables category – 2.1 percent. “Compared to the previous twelve months (March 2012 – February 2013), in the last twelve months (March 2013 – February 2014) the overall increase in prices was 3.2 percent based on the IPC and 2.6 percent based on the Harmonized Index of Consumer Prices (HICP),” an INS press release shows. In the first month of 2014, the inflation rate went up by 0.9 percent compared to December.
A considerable increase in food prices was reported in February 2014, compared to January, 2014, in green beans and other legumes – 3.6 percent, vegetables and canned vegetables – 2.16 percent, fresh fruit – 1.97 percent, fruit and canned fruit – 1.33 percent, and milk and dairy products – 0.43 percent. In the category of non-food products, which also includes services, the steepest prices were reported in healthcare services – 1.85 percent, hygiene and cosmetics – 1.46 percent, car repair services, electronics, and photo works – 0.91 percent, tobacco and cigarettes – 0.91 percent, rent – 0.69 percent, and payment for hotel accommodation – 0.69 percent.
The National Bank of Romania has estimated a 3.5 percent inflation rate for 2014, which is in the upper limit of the 2.5 percent plus/minus 1 percent target interval. Last year’s inflation rate was 1.55 percent, a record minimum.
According to the National Prognosis Commission (CNP), in the following four years, consumer prices will increase within the multiannual inflation target announced by the National Bank of Romania, of 2.5 percent plus/minus 1 percent, which was determined based on the main macroeconomic indicators projected for the period between 2014 and 2017. Thus, the inflation rate will be 3.4 percent in 2014, 2.5 percent in 2015, 2.3 percent in 2016, and 2.2 percent in 2017, CNP data shows.
The same information provided by INS points out that industrial production has increased in January compared to December both according to raw data, by 6.4 percent, and according to data adjusted by number of workdays and seasonality, by 2.3 percent; the same indicators are 10.1 percent and 9.9 percent, respectively, higher than in January, 2013. “In January, 2014, industrial production (raw data) went up by 6.4 percent compared to the previous month, thanks to an 8.8 percent increase in the processing industry. The extraction industry reported a 11.2 percent drop, and the supply of electricity, heat, gas, hot water, and air conditioning also dropped by 4.2 percent.
“The following major industrial groups reported an increase: the durable goods industry (+20.0 percent), the capital goods industry (+11.2 percent), and the intermediate goods industry (+10.5 percent), whereas the following industries reported a decrease: the energy industry (-3.9 percent) and the non-durable goods industry (-1.8 percent),” the press release issued by the Institute notes further.
Industrial production (raw data) went up by 10.1 percent in January compared to the same period last year, as a result of a 12.4 percent increase in the processing industry. The extraction industry and the production and supply of electricity, heat, gas, hot water, and air conditioning dropped by 7.8 percent and 0.4 percent, respectively.
An increase was reported in most categories of goods within major industrial groups. For example, the capital goods industry increased by 16.4 percent, the durable goods industry by 13.9 percent, the intermediate goods industry by 8.2 percent, and the non-durable goods industry by 7.8 percent. However, the energy industry dropped by 0.5 percent.

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