Romania’s inflation rate declines to 4.6 percent in July

Romania’s annual inflation rate has declined to 4.6 percent in July, from the 5-year record level of 5.4 percent registered in May and June, as the summer food price effect calmed down consumer prices, National Institute of Statistics (INS) data show.

In May and June, Romania posted the biggest annual inflation rate since February 2013, of 5.4 percent.

Compared with the same month of last year, the prices of food products rose by 3.4 percent on average, while non-food products increased by 6.2 percent. The prices of services went up by 2.7 percent.

Compared with June, consumer prices in Romania decreased by 0.5 percent, as food prices declined by 0.8 percent, non-food products’ prices went down by 0.55 percent, while services’ prices rose by 0.2 percent.

The biggest price decreases compared with June were recorded for potatoes (-7.8 percent), fresh fruits (-6.5 percent) and electricity (-4.1 percent), while the biggest monthly price increases were registered for flight tickets (+5.1 percent).

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The price of fuels rose by 5.8 percent compared to December 2017.

The central bank has an inflation estimate of 3.5 percent for December 2018.

Romania is the country with the highest annual inflation rate among the European Union member states, of 4.7 percent measured by Harmonised Indices of Consumer Prices (HICP) in June, according to Eurostat.

The HICP index used by Eurostat measure price with a unified basket of consumer products and services for the 28 member states.

But the Romanian basket of consumer products and services, which includes a higher percentage of food products (33.2 percent of total basket), shows a different picture.