Romania: Consumer prices record slightly softer drop in October
November 11, 2015
In October, consumer prices rose 0.3% over the previous month, which matched September’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 1.6% in October, which marked a slightly softer drop than September’s 1.7% fall. Nevertheless, in October, 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 0.3% in annual terms in October (September: no change year-on-year), marking the lowest reading on record.