The annual inflation rate in Romania, which measures the evolution of consumer prices in the last year, rose to 0.85% in June, the highest level in the last two years.

Food prices dropped compared to the previous month whereas plane ticket prices increased for the second month in a row, according to the National Statistics Institute.

In May, the annual inflation rate amounted to 0.64%.

Consumer prices rose in June by an average of 0.04% compared to May. Food prices decreased by 0.18% on average in June over May whereas prices of non-food products went up by 0.07%. Service prices rose by 0.33% during this period.

Compared to June 2016, food prices increased by 2.8% in June this year.

The price of plane tickets went up by 3.9% in June over May, following an increase of 7.6% in May. This means that the plane ticket price rose by over 11% in the last two months.

The general VAT rate dropped from 20% to 19% at the beginning of this year. The extra excise on fuel amounting to 7 euro cents per liter of fuel has been removed.

The annual inflation rate reached -0.5% at the end of 2016. It was the second year in a row when the annual inflation rate recorded negative values. Romania’s National Bank estimates that the annual inflation rate will reach 1.6% at the end of this year.

editor@romania-insider.com