Inflation rate remains high in Romania: 4.1% in May

Consumer prices increased on average by 4.1% year-on-year in May, the same rate as one month earlier, the statistics office INS informed.

The annual consumer price inflation was 4.4% when calculated under the Eurostat methodology (HICP inflation), namely based on the standard basket of goods user across European Union countries. Based on the national methodology, the average inflation over the past 12 months was 4.2% (average HICP inflation was 4.1%).

As of May 2019, the food prices were 5.2% higher than one year earlier. Moreover, food prices rose by 4.6% since the beginning of the year, and the price of potatoes soared by 55% year-to-date while the average price of other vegetables (except potatoes and beans) rose by 23% as well.

Non-food prices rose more moderately, by 3.3% year-on-year and by 2.5% in the first five months of this year. The non-food prices were driven by car fuel prices (+6.2%) and tobacco prices (+4.7%) in the first five months.

In the services area, 6% year-to-date higher fees for telecom services, prompted by the currency weakening (fees are generally expressed in euro) and the 3% turnover tax levied on telecom companies resulted in 2.8% overall rise in the price of services after the first five months of the year. Services’ prices were 4.3% up year-on-year.

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