Romania Inflation Stable In October Despite Rising Food, Service Prices

11.11.2013 By Florentina Dragu

Romania’s annual inflation rate held steady at 1.88% in October, despite rising prices for food and services, official data showed Monday.

Consumer prices rose 0.3% in October over the previous month, after a 0.6% decline in September, data from the country’s statistics institute INS showed. Food and service prices increased 0.5% on the month each, while non-food prices edged up 0.1%.

Romanians paid by 6.32% more for fresh and canned vegetables in October compared with the previous month, with the cost of potatoes posting the highest monthly increase of 8.9%, the data showed. Eggs were by 8.75% more expensive, but fruit prices fell 2.94%.

Energy prices rose 0.7% on the month, mainly reflecting a 1.24% increase in natural gas costs, while long-distance transport tariffs were up 0.8%. Other services were by 1.13% more expensive.

Romania’s harmonized index of consumer prices, or HICP, was 3.7% at the end of October, down from 4.1% in the previous month.

The central bank last week revised its forecast on the country’s inflation to 1.8% in December from 3.1% previously, citing lower prices of volatile products.

The bank said the annual rate will likely decelerate to historical lows in the first part of 2014, on the back of a positive effect of this year’s crops and a lower sales tax rate for bread and bakery items.