ECONOMY FINANCE&BANKING

Romania, one of six member-states in the EU with negative annual inflation in November

The annual rate of inflation in the Eurozone and in the European Union has gone up in November, reaching 0.6 percent from the previous 0.5 percent in October, while Romania was in negative territory (minus 0.2 pct) from a level of 0.1 pct in October shows data published on Friday by the European Statistical Office (Eurostat).

According to the quoted source, only six member-states have recorded a negative annual inflation: Bulgaria and Cyprus (minus 0.8 pct), together with Romania, Ireland, Greece and Slovakia all with an annual inflation of 0.2 pct.

The highest annual rate of inflation were recorded in Belgium (1.7 pct), Czechia (1.6 pct), and Malta (1.5 pct). Compared to October 2016, the annual inflation went down in five member states, remained stable in six states, and went up in 17 states.

In the case of the Eurozone, the most significant impact on the growth of prices was recorded by restaurants and cafes (a 0.07 percentage point increase), followed by rents and cigarettes (with 0.04 percentage point increase). On the other hand, the most significant negative impact on inflation came due to natural gases (minus 0.11 percentage points), to heating fuel (minus 0.05 percentage points), and to tourist packages (minus 0.04 percentage points).

In what regards Romania, data published earlier by the National Institute for Statistics (INS) show that consumer prices, measured through the Consumer Price Index (CPI), were lower by 0.7 percent in November 2016 as compared to November 2015. Determined on the basis of the Harmonised Consumer Price Index (HCPI), the annual rate of consumer prices was of 0.2 percent.

The National Bank of Romania (BNR) maintained, in the most recent report on inflation, presented in November, the inflation estimate for this year at minus 0.4 percent, but revised the prognosis for next year from 2.1 percent to 2 percent, as the estimate stood in August.

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