March inflation figures in Romania are lowest since communist era

Inflation in Romania fell to the lowest level since the end of communism in March. The rate dropped to 2.4 percent from 2.6 percent in February, driven, according to figures from the National Statistics Institute (INS), by falling food prices.

Low levels of inflation have given Romania's Central Bank room to maneuver with interest rates recently, allowing the rate to be cut in an attempt to stimulate Romania's economy in the face of growing threats to recovery, particularly from the rolling crisis embroiled eurozone. As well as falling prices for food items, a slow down in the rate of price increase of non-food items contributed to the record breaking low for inflation. The overall average price increase in the last 12 months compared to the previous 12 months (April 2010 - March 2011) determined by the Consumer Price Index (CPI) is 4.5 percent. Liam Lever, liam@romania-insider.com