The annual inflation rate in Romania, which measures the evolution of consumer prices in the last year, went up to 1.4% in July, the highest level since October 2014.

In June, the annual inflation rate stood at 0.85%.

Food prices dropped by an average of 0.39% month-on-month in July whereas non-food prices went up by 0.93%, according to data from the National Statistics Institute (INS). Service prices rose by 0.14% during this period.

When compared to July 2016, the prices of food increased by 2.4% in July 2017 while the non-food prices went up by 1.7%.

The largest month-on-month increases were registered in electricity prices – up around 6.8%, and butter – 1.2%. On the other hand, the biggest decreases were registered in the prices of potatoes – minus 9.3%, citrus fruits – minus 2.7%, and other vegetables – minus 2%.

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 1.9% at the end of this year.

Irina Marica, irina.marica@romania-insider.com