Romania’s annual inflation rate weakened further in May, to 5.1%, according to the official report released by the statistics institute INS on Wednesday, June 12. The figure dropped from 5.9% in April and 6.6% the month before.

The inflation rate from the beginning of the year (May 2024 to December 2023) was 2.3%, INS also said.

Food prices increased by 1.24% year-over-year in May 2024, while non-food goods got 6.38% more expensive, and services tariffs rose by roughly 9.29%. 

Among foods, the biggest year-over-year price increases were recorded for canned fruits - roughly 10%, wine and beer - over 8%, and beef - 7.77%. The price of flour decreased the most, by 30.51%.

When it comes to non-food goods, medicines were the star of price increases with 24.15%, followed by detergents - 23.70%. The price of natural gas dropped by 17.89%, marking the biggest decrease of the period.

Meanwhile, the service tariff increase was mainly influenced by a 26.57% hike in postal services.

The National Bank of Romania (BNR) has revised upward to 4.9% from 4.7% previously the inflation forecast for the end of this year, according to Agerpres. At the same time, the financial institution expects the inflation to drop to 3.5% at the end of 2025.

irina.marica@romania-insider.com

(Photo source: Tero Vesalainen/Dreamstime.com)