Romania: Inflation falls in January
February 12, 2014
In January, consumer prices rose 0.9% over the previous month, which was above the 0.3% rise recorded in December. According to the National Institute of Statistics (INSSE) the reading was the result of higher prices for food goods and non-food goods, which offset lower prices for services.
Annual headline inflation fell from 1.6% in December to 1.1% in January. As a result, inflation is now below the Central Bank's tolerance margin of plus/minus 1.0% around its target of 2.5%. Annual average inflation edged down from 4.0% in December to 3.6% in January.
The Central Bank foresees inflation ending 2014 at 3.0%. FocusEconomics Consensus Forecast panelists see inflation at 3.9% by the end of 2014, which is up 0.1 percentage points from last month's forecast. For 2015, panelists anticipate an inflation rate of 3.6%.
Author: Dirina Mançellari, Senior Economist