Romania and Malta recorded the highest inflation rates in the European Union in May, according to EU’s statistical office Eurostat. The two countries saw a 1.3% annual inflation rate, whereas the annual inflation rate in the EU went up to 0.3% in May.

Eight European countries had a negative inflation rates in May, including Cyprus (-1.7%) or Greece (-1.4%).

Compared to the previous month, the inflation rates grew in 23 member states in May. In Romania, it went up from 0.6% to 1.3%, as food prices increased just before the VAT rate cut for food was enforced, on June 1.

The inflation rate in Romania should drop in June to reflect the lower VAT.

editor@romania-insider.com