Annual inflation rate remains negative in Romania, but increases to -0.7%

The annual inflation rate remained negative in June, amounting to -0.7%, according to the National Statistics Institute (INS). However, it increased from -3.5% in May as the effect of the VAT rate cut on food from 24% to 9% in June 2015 disappeared. The food prices increased by 0.03% on average compared to the same month last year whereas the prices of non-food goods dropped by 1.22%. The service prices also went down by 0.7%. In June, the share of goods and services whose prices went down reached 49.8% whereas those whose prices increased by up to 2.5% had a share of 34.7%. The goods and services whose prices rose by more than 2.5% represented a slice of 15.5%. editor@romania-insider.com