Romania: Inflation stays put in May
June 11, 2013
In May, consumer prices rose 0.2% over the previous month (April: +0.1% month-on-month), overshooting market expectations of a flat reading. The increase was mainly driven by higher prices for food products.
As a result of the modest increase, annual headline inflation matched last month's performance rising 5.3% in May. The print, nevertheless, is still above the Central Bank's tolerance margin of 2.5% plus/minus 1.0%. Annual average inflation rose from 4.4% in April to 4.7% in May, reaching the highest rate in more than a year.
The Bank foresees inflation to end at 3.2% this year and 3.3% the next. 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%.