Annual inflation rate goes up to -0.4% in Romania in October

Romania’s annual inflation rate, which measures the evolution of consumer prices over the last 12 months, rose to -0.4% in October from -0.6% the previous month, according to data published by the National Statistics Institute (INS). All the categories of products and services became more expensive last month, INS showed. The consumer prices rose by 0.43% on average in October compared to September. The food prices rose the most, namely by 0.53% on average, whereas the prices of non-food goods went up by 0.39%. The service prices increased by 0.33% on average over the previous month. Between November 1, 2015 and October 31 this year, the food prices increased by 0.49%. The prices of non-food items got cheaper by 0.8% whereas the prices of services dropped by 1.1%. Non-food products and services got cheaper due to the general VAT rate cut from 24% to 20% starting January 1, 2016. The VAT rate for food was cut from 24% to 9% on June 1, 2015. Romania’s central bank maintains inflation estimate for 2016 at -0.4% editor@romania-insider.com