Romania: Inflation inches up in June
July 10, 2013
In June, consumer prices remained virtually flat over the previous month, adding 0.01% over May. The figure was down from both the 0.2% increase seen in May as well as market expectations of a 0.2% rise. The monthly result reflected how higher prices for non-food products and services were almost completely offset by lower prices for food.
Despite the subdued monthly result, annual headline inflation rose from 5.3% in May to 5.4% in June. Inflation thus remains well above the Central Bank's inflation target of 2.5% with a tolerance margin of plus/minus 1.0%. In addition, annual average inflation rose sharply from 4.7% in May to 5.0% in June, reaching the highest rate in more than a year.
The Central Bank foresees inflation ending at 3.2% this year and at 3.3% in 2014. FocusEconomics Consensus Forecast panellists see inflation at 3.9% by the end of this year, which is up 0.1 percentage points from last month's result. For 2014, panellists anticipate an inflation rate of 3.6%.