Capital Economics: 0.8% inflation rate in Romania, deflation avoided

Romania will have a 0.8% inflation rate this year, dropping below the market expectations, which estimated a 2.5% rate, but it will avoid deflation caused by the fall in oil prices, according to the UK-based macroeconomic research consultancy Capital Economics, reports local Mediafax. Capital Economics estimated for last year a 1.1% inflation in Romania, but the National Institute of Statistics announced on Tuesday, January 13, that the annual inflation rate fell to a 0.83% record low. This was due to the fact that consumer prices went down by 0.1% in December 2014 month-on-month, and prices for non-food goods decreased by 0.5%, while prices for food and services slightly increased. National Bank of Romania's (BNR) Governor Mugur Isarescu said last week that the inflation will remain under the BNR target for several months. editor@romania-insider.com