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October 7, 2022

Romania’s annual inflation rate down to 4.3pct in October

Romania’s annual inflation rate in October dropped to 4.3 percent, from 5.03 percent in September, taking into account that non-food goods prices rose by 5.27 percent, those of food products increased 3.73 percent, whereas prices of services recorded an advance of 2.73 percent, according to the data published on Monday by the National Institute of Statistics (INS).

This year, the highest annual inflation rate was recorded in May, 5.41 percent respectively, the highest level since February 2013, when the increase of consumer prices reached 5.65 percent.

“In October 2018 compare to October 2017, the consumer prices increased by 4.3 percent. The annual rate based on the Harmonized Index of Consumer Prices (HICP) is 4.2 percent. The average inflation rate over the last 12 months (November 2017 – October 2018) compared to the previous 12 months (November 2016 – October 2017), based on the CPI, is 4.6 percent. Based on the HICP, the average rate is 4.00 percent,” a press release of the INS sent to AGERPRES informs.

Compared to September 2018, the consumer prices increased by 0.52 percent, with prices of food products increasing by 0.61 percent, while those of non-food goods went up 0.52 percent and services prices advanced 0.35 percent.

The average monthly inflation rate in the first nine months of this year was 0.3 percent compared to 0.2 percent in 2017.

The National Bank of Romania (BNR) maintained the inflation forecast for the end of this year at 3.5 percent and revised upwards the forecast for the next year, namely to 2.9 percent, from 2.7 percent.

Moreover, The National Prognosis Commission (CNP) maintained to 3.5 percent its projection regarding the consumer price index for the end of the current year, but also for next year, ie 2.8 percent in 2019.

In the latest “World Economic Outlook” report, the International Monetary Fund maintained its estimations regarding the consumer prices to an average annual growth of 4.7 percent, but revised them downwards for 2019, when the increase rate would slow down to 2.7 percent compared to an increase of 3.1 percent as forecast in the spring.

However, the European Commission, in its autumn forecast, revised slightly upwards the inflation forecast for 2018 to 4.3, compared to 4.2 percent as it had forecast in the spring, with the consumer price index declining to 3.5 percent in 2019 and 3.3 percent in 2020, following the decline in the domestic request.

For the eighth consecutive month, Romania recorded in September the highest annual inflation rate among the EU member states, with an increase in consumer prices of 4.7 percent, similar to the one registered in August, the data published on 17 October by the European Statistical Office (Eurostat) showed.

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