Romania: Inflation rises to highest level in almost two years
June 10, 2011
In May, consumer prices increased 0.21% over the previous month, which was below the 0.66% print recorded in April. The rise was broad-based, reflecting elevated prices for food and non-food items as well for services. Annual headline inflation inched up from 8.3% in April to 8.4% May, which marked the highest level since July 2008. The increase surprised market analysts, who saw inflation edging up to 8.5%. Annual average inflation rose from 7.2% in April to 7.5% in May. The Central Bank has set a 3.0% inflation target for this year with a 1.0 percentage point tolerance margin. However, the Bank forecasts year-end inflation at 5.1% this year, and 3.6% in 2012.