Romania’s inflation rate drops to 1.79 percent in May

Newsroom 12/06/2012 | 12:34

The annual inflation slightly fell to a new historic low of 1.79 percent in May against 1.8 percent in the previous month, said the National Statistics Institute (INS).

Prices increased by 0.2 percent in May due to gains in food and non-food products of 0.02 percent and 0.21. In the same time, service tariffs added 0.53 percent.

“Even if we registered an annual inflation rate of 1.79 percent in May, the inflation rate will stand at 3.2 percent by year end, due to a negative basis effect,” said Lucian Croitoru, governor counselor at the National Bank of Romania, quoted by Agerpres newswire. He added the inflation could jump up to 4 percent in September, due to a strong variation of volatile prices in vegetables, fruits and eggs.

The average price increase in the last 12 months (June 2011 – May 2012) against the previous 12 months stood at 3.5 percent, based on the price consumer index (CPI).

Greek Eurobank EFG, which owns Bancpost in Romania, forecasts in its June research paper on Romania that the inflation rate will reach 3.2 percent by year end, while the annual average will be 2.8 percent.

Ovidiu Posirca

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