Romania: Inflation slows to lowest level in more than a year
October 10, 2013
In September, consumer prices fell 0.6% over the previous month, which marked a larger drop compared to the 0.2% fall recorded in August. The decrease came on the back of lower prices for food products.
Annual headline inflation eased considerably from 3.7% in August to 1.9% in September, reaching its lowest level in more than a year. As a result, inflation is now within the Central Bank's target of 2.5% (plus/minus 1.0% tolerance margin). In addition, annual average inflation edged down from 5.1% in August to 4.8% in September.
The Central Bank foresees inflation ending both 2013 and 2014 at 3.1%. FocusEconomics Consensus Forecast panelists see inflation at 3.9% by the end of this year, which is up 0.1 percentage points from last month's forecast. For 2014, panelists anticipate an inflation rate of 3.6%, which is down 0.1 percentage points from last month's projection.
Author: Dirina Mançellari, Senior Economist