Romania’s inflation accelerates slightly to 4.1% in July

The consumer prices in Romania edged down by 0.2% in July, compared to June -- but compared to the same month last year, they were 4.1% higher, according to the statistics office INS.

The headline inflation thus accelerated above 4% in the month from 3.8% in June.

Over the past six months, however, it has hovered within a rather stable range of 3.8%-4.1%.

For the end of this year, the National Bank of Romania expects the inflation to only marginally accelerate to 4.2%, but later in 2020, the monetary authority expects it to ease to 3.4%.

As for July inflation, it was equally driven by food prices, 5.2% up compared to the same month last year, and non-food goods’ prices that increased by 3.4%. Each category contributed 1.65 percentage points to the overall 4.1% annual inflation. Potatoes, exotic fruits, car fuel and tobacco were the items that contributed the most to the overall increase in prices. The prices of services, which hold a relatively smaller share in the basket of consumer items, advanced by 4.1% and contributed 0.8 pp to the 4.1% year-on-year inflation.

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