Romania’s annual inflation rate up in January, higher prices for electricity, potatoes

The annual inflation rate in Romania was 5.97 percent in January 2013, up from the 4.95 percent recorded in December last year, according to the National Statistics Institute (INS). The month of January brought an average monthly increase in prices of 1.3 percent, mostly due to higher food prices - up 1.2 percent. Non-food goods were some 2 percent more expensive, while the prices for services posted a month-on-month decrease of 0.1 percent, according to the INS data. The largest price increases in food items were recorded for potatoes - up 8.84 percent and other vegetables and tinned vegetables - up 8.34 percent, while the price for sugar decreased by some 0.1 percent. For non-food goods, the largest price increases were recorded for electricity - 10.38 percent, followed by tobacco and cigarettes - up 3.5 percent, and books, newspapers and magazines - up 1.7 percent. Price decreases were recorded for cars and spare parts, which went down 0.38 percent. Read more here. Romania’s inflation rate should be within the 3.5 percent target by the end of this year, according to the country’s central bank (BNR) governor Mugur Isarescu . BNR has kept its forecast at 3.5 percent, with increases in energy costs predicted to be balanced by slow price growth in the second half of the year. Irina Popescu, irina.popescu@romania-insider.com (photo source: sxc.hu)