Romania’s annual inflation rate eases to 2.7% in April 2020

Romania's annual inflation rate eased to 2.7% in April from 3.0% in March and 4.0% at the end of last year. Food prices rose on average by 5.7% over the past 12 months.

Meanwhile, the prices of non-food goods increased by only 0.53% in the same period. The prices of services went up 3.1%.

On average, consumer prices rose in April by 0.26% compared to March and by 1.42% compared to the end of last year.

The drop in the fuel prices, by 2.6% compared to March and by 8.3% compared to the end of last year, contributed to the subdued inflation in the first months of the year and also dragged down the annual increase.

Meanwhile, food prices went up by 1.27% in April versus March and by 4.42% compared to December 2018. The prices of fruits and vegetables rose by 12.7% and 15.9% respectively in the first four months of the year.

"April inflation printed a touch above the 2.50% consensus view and ING forecast. On our side, almost the entire forecast error came (again) from fresh fruit and vegetable prices, which both spiked by nearly 5% in April compared to the previous month.

This has contributed decisively to food prices increasing by 1.3% in April versus March. Non-food prices declined by 0.3% while services came in flat in April," reads a note from ING Bank Romania analysts.

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