Romania Inflation Eases To 5.65% In February

03.12.2013 By Florentina Dragu

Romanian consumer prices inched up 0.34% on the month in February, but the annual inflation slowed to 5.65%, from a year-and-a-half high of 5.97% in the previous month, official data showed Tuesday.

Food prices increased 0.3% month-on-month, while non-food prices and service tariffs were up 0.4% and 0.2%, respectively, the statistics institute INS said.

Romanians paid by 3% more for vegetables in February compared with the previous month, while fuel prices advanced 1.3%, the data showed. The bill for water and sewage services increased 0.7% on the month, while medical service prices were up 0.35%.

The country’s harmonized index of consumer prices, or HICP, edged up to 3.8% at the end of February, from 3.6% the month before.

Romanian central bank targets an annual inflation of 2.5% at the end of 2013, plus/minus one percentage point around the band.

Last month, the bank kept its key rate unchanged at a historic low of 5.25% a year and warned of heightened inflationary risks due to an unfavorable base effect and higher administered prices.

Central bank governor Mugur Isarescu said the annual inflation is expected to accelerate up to 6% in the first half of 2013 before easing toward the upper end of the bank’s target range.