Romania: Inflation drops in July
August 10, 2018
Consumer prices decreased 0.5% over the previous month in July, following a flat reading in June. Lower prices for non-food and food goods drove the result, offsetting higher prices for services. Fruit and vegetables, and electric energy recorded the largest decrease in prices, while cultural and sport products recorded the strongest increase.
Inflation declined from June’s 5.4%, which was a multi-year high, to 4.6% in July, a six-month low. Nevertheless, inflation remained well above the Central Bank’s target range of 1.5%–3.5%, where it has been for seven consecutive months. Meanwhile, annual average inflation rose from 3.6% in June to 3.9% in July, the highest level since December 2013.
Romania Inflation Forecast
FocusEconomics Consensus Forecast panelists see inflation averaging 3.8% in 2018, which is unchanged from last month’s forecast. For 2019, panelists expect average inflation of 3.2%.