Inflation stays low in April, in spite of price increases for gasoline and cigarettes

Romania’s annual inflation rate rose to 1.21 percent at the end of April, from an all-time low of 1.04 percent a month earlier, ending a five-month period of declines, official data showed Monday.

In spite of the increase, inflation remains below the central bank’s 1.5-3.5 percent target.

INS’s data shows consumer prices increased 0.3 percent up on the month. Food and services prices were each 0.1 percent down. Non-food prices rose 0.7 percent.

The most significant price increases were registered for fuel (up 3.16 percent) and tobacco (up 1.77 percent), as a result of new tax excises.

Central bank Governor Mugur Isarescu said on Thursday a decision to lower the bank’s end-2014 inflation forecast to 3.3 percent from 3.5 was “strongly justified” and energy prices will put less upward pressure on inflation than previously expected.

Read more about

Annual inflation rate dropped to 7.2 percent in February

read more