Cheaper potatoes and vegetables bring Romania's annual inflation down in July

Consumer prices in Romanian fell in July for the second consecutive month due to cheaper food, and the annual inflation rate was down to 4.85 percent, according to the Romanian National Statistics Institute (INS). Consumer prices dropped by 0.35 percent compared to June this year. The annual inflation rate was of 7.93 percent in June. In the food category, the biggest reductions were recorded for vegetables and canned vegetables, which have declined by almost 15 percent in price, while the price of potatoes have declined by almost 5 percent. Fruits and canned fruits prices dropped by 5.36 percent. The non-food goods prices rose by 0.44 percent in July. The growth was driven largely by higher prices for tobacco and cigarettes with 1.91 percent, and fuel with 0.65 percent. For services, the largest price increases were reported in water, sewerage and sanitation. 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)