Romania: Consumer prices drop less in November
December 11, 2015
In November, consumer prices rose 0.3% over the previous month, which matched October’s reading and marked a second consecutive month of rising prices. Before, consumer prices had been falling in monthly terms since June, mainly resulting from the reduction of the value added tax (VAT) for food items and beverages from 24% to 9% on 1 June.
In annual terms, consumer prices declined 1.1% in November, which marked a fairly softer drop than October’s 1.6% fall. Nevertheless, in November, inflation remained far below the Central Bank’s tolerance margin of plus/minus 1.0% around its target of 2.5% target. On average, consumer prices fell 0.5% in annual terms in November (October: -0.3% year-on-year), marking yet another record-low.