Romania posts new record low for inflation, consumer prices down in June

Romania’s annual inflation went down to 0.66 percent in June this year, compared to June 2013, which is a new record low, according to data released by the National Statistics Institute (INS). Consumer prices were down by 0.27 percent in June compared to May this year, due to cheaper food and services. Food prices were down 0.74 percent in June, while prices for services decreased 0.18 percent. Prices for non-food items were 0.08 percent higher compared to May. The largest price decrease was recorded for vegetables, which got cheaper by 5.5 percent in June compared to May, which is also due to seasonal price variations. The average inflation rate for the last 12 months, compared to the previous 12 months, determined on the Consumer Price Index (IPC) was 1.7 percent in June, which is also a new historic low for Romania. The average inflation rate for the last 12 months based on the harmonized Consumer Price Index (IAPC), which is used for comparison in European statistics, was 1.5 percent. The inflation prognosis for this year is of 3.3 percent, according to Romania’s Central Bank, lower from the initial projection of 3.5 percent. editor@romania-insider.com