Cheaper food brings Romania’s annual inflation rate down in August

Consumer prices in Romanian fell in August for the third consecutive month due to cheaper food, and the annual inflation rate was down to 4.25 percent, according to the Romanian National Statistics Institute (INS). In August, food prices fell by 1.4 percent compared to the previous month, while the non-food products prices remained almost unchanged. The services reported an increase of 0.8 percent in August. In the food category, the biggest price reduction was reported in fresh fruits, which have declined by over 17 percent compared to the previous month, while a significant price increase was reported for eggs, a hike of 5.2 percent. In July this year, the inflation rate stood at 4.85 percent. The Romanian Central Bank (BNR) has revised the inflation forecast for this year from 5.1 percent to 4.6 percent, and the 2012 forecast from 3.6 percent to 3.5 percent, according to the Central Bank’s governor, Mugur Isarescu. Irina Popescu, irina.popescu@romania-insider.com (photo source: Sxc.hu)