Romania: Inflation drops in January
February 14, 2011
In January, consumer prices increased 0.77% over the previous month, which was up from the 0.53% rise recorded in December. The increase mainly reflected higher prices for food and non-food items, while services recorded a slight drop. Annual headline inflation decreased from 8.0% in December to 7.0% in January, broadly in line with market expectations.. However, annual average inflation inched up from 6.1% in December to 6.2% in January. Despite the elevated level of inflation, at its 3 February meeting, the Central Bank left the monetary policy rate unchanged at 6.25%, where it has remained since May last year. The next meeting is scheduled for 29 March. The Central Bank has set a 3.0% inflation target for this year with a 1.0 percentage point tolerance margin, and expects inflation to end the year at 3.6%.