Romania: Inflation remains stable in April
May 10, 2013
In April, consumer prices rose 0.1% over the previous month (March: 0.0% month-on-month), overshooting market expectations of another flat reading. The increase was broad-based, with food, non-food products and services all experiencing small price rises.
As a result of the modest increase, annual headline inflation remained stable at 5.3% in April, matching March's reading. The print, nevertheless, still keeps inflation above the Central Bank's tolerance margin of 2.5% plus/minus 1.0%. Annual average inflation rose from 4.1% in March to 4.4% in April, reaching the highest rate in more than a year.
The Bank changed its expectations on inflation in May and now 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%.