INS: Consumer prices up in November, annual inflation rate up in October by 3.2 pct

Consumer prices went up in November, annual inflation rate increased by 3.2 percent from 2.6 percent in October, due to the food prices increase by 3.88 percent and non-food products prices increase by 4.12 percent, according to the National Institute of Statistics (INS).

The services prices decreased year-on-year by 0.10 percent.

„The average rate of consumer prices in the last 12 months (December 2016- November 2017) compared with the previous 12 months (December 2015- November 2016), calculated based on consumer price index, is 1 percent. Based on the consumer price harmonized index, the average rate is 0.9 percent,” says INS.

Compared with October this year, the prices climbed by 0.66 percent in November, considering that food merchandise was more expensive by 0.57 percent and non-food prices by 0.86 percent and services by 0.33 percent.

The National Bank of Romania (BNR) revised upwards to 2.7 percent the inflation forecast for the end of this year, from 1.9 percent previously.

For the end of 2018, BNR estimates an inflation rate of 3.2 percent, similarly to the previous forecast and for the end of the third quarter of 2019, it’s expected an inflation rate of 3.1 percent.

According to BNR, exceeding the superior limit of the target interval in the first part of 2018 is due mainly to the statistic effects of some cuts in taxes and indirect taxes per profit at the beginning of 2017, as well as the accumulation of inflation pressures associated to internal environment.