Potatoes and eggs top once again the price hikes in November.
Consumer prices were relatively stable in November 2013 when compared with the previous month. They went slightly down by 0.01 percent and the annual inflation rate in the past 12 months dropped to 1.83 percent, according to the data published by the National Institute of Statistics (INS) on Wednesday, a press release informs.
“In November 2013, food prices dropped by 0.2 percent compared to the previous month, whereas non-food prices and service fees went up by 0.1 percent each,” the cited document shows. The steepest drop (by 4 percent) in food prices was reported in the fruits and canned fruits category. Non-food prices and service fees suffered minor alterations by 1 percent upward or downward for each item or service.
INS has confirmed that the price of bread declined by 12 per cent, this fact proving the efficiency of the decision to cut the VAT on bread, Prime Minister Victor Ponta said on Wednesday at the beginning of the Government meeting. Ponta also said that if the reduction in the VAT on bread diminishes tax evasion, then the measure could be extended to other products as of 2014. At the same time, the Premiere suggested Agriculture Minister Daniel Constantin to inform President Traian Basescu that the price of bread went down by over 10 per cent, following the reduction in the VAT.
In the first half of November, the National Bank of Romania adjusted this year’s inflation prognosis significantly from 3.1 percent to 1.8 percent and the end-of-the-year prognosis from 3.1 percent to 3 percent. At the start of 2013, the inflation target set by BNR was 2.5 percent ± 1 percent. Moreover, the National Prognosis Commission adjusted the end-of-the-year inflation prognosis from 3.5 percent to 2 percent, resulting in a drop in the annual average from 4.3 percent to 4.1 percent.
Among food products with higher prices in November, as in October, potatoes and eggs were the most expensive, experiencing a price increase of 6.11 percent and 5.03 percent, respectively. Citrus fruits and exotic fruits were 8.29 percent cheaper, as were fruits and canned fruits (3.98 percent drop), according to INS data.
Since the start of the year, beans and potatoes have reported sharp price increase by 13.94 percent and 10.07 percent respectively, whereas eggs and bread prices decreased by 21.44 percent and 11.41 percent, respectively. Overall, food product prices have dropped by 0.15 percent in November and by 2.42 percent since the start of the year. Bean prices also went up in November by 2.16 percent, while edible oil prices dropped by 1.37 percent. Likewise, sugar, beer, and poultry meat prices have dropped by 0.05 to 1.17 percent.
On the other hand, non-food prices have gone up by 0.06 percent in November and by 3.46 percent since the start of the year. Prices were increased by 0.51 percent in footwear and by 0.37 percent in heat utilities, whereas the price of fuel was decreased by 0.12 percent. The steepest rise in prices since the start of the year was reported in the following categories: natural gas by 9.25 percent, heat by 7.90 percent, and books, newspapers, and magazines by 5.21 percent. Service fees have gone up by 0.10 percent in November and 3.22 percent since the start of the year. Medical care service fees and restaurant, café, and cafeteria service fees reported a slight increase by 0.23 percent and 0.26 percent, respectively. Since the start of the year, water, sewerage, and sanitation fees have gone up by 11.96 percent, as did other service fees (5.88 percent) and urban transport (4.04 percent). In October 2013, the annual inflation rate was 1.88 percent.
Turnover in services rendered to enterprises on the rise
According to the data provided by INS, the nominal turnover in market services rendered primarily to enterprises went up in October, compared to the previous month, both in terms of raw data, by 3 percent, and data adjusted in accordance with the number of workdays and seasonality by 0.2 percent. Compared to October 2012, the nominal turnover in market services rendered primarily to enterprises went up both in terms of raw data and data adjusted in accordance with the number of workdays and seasonality by 7.6 percent each. In the first ten months of 2013, the nominal turnover in market services rendered primarily to enterprises went up compared to the same period last year, both in terms of raw data and data adjusted in accordance with the number of workdays and seasonality by 7.7 percent and 7.3 percent, respectively. In comparison with September 2013, the turnover went up by 3 percent overall in October, thanks to an increase in activities related to film production, videos, televisions programs; television program broadcasting (+28.7 percent), communications (+5.2 percent), other services rendered primarily to enterprises (+4.0 percent), computerized and information technology services (+1.1 percent), and transport (+0.4 percent).