Romania Inflation Hits New Record Low Of 0.94% In May

06.12.2014 By Florentina Dragu

Romanian consumer prices were roughly unchanged in May from a month earlier, but the annual inflation eased to an all-time low of 0.94%, from 1.2% a month earlier, official data showed Thursday.

The consumer price index edged down 0.04% last month, after an increase of 0.3% in April, the country’s statistics institute INS said.

Food and services prices inched up 0.1% on the month in May, while non-food prices declined 0.1%.

Romanians paid by 3.1% less for sugar in May compared with a month earlier, but fresh fruit were 5.9% more expensive.

In the non-food sector, fuel prices declined 0.3% in May, while tobacco and energy prices were flat on the month, the data showed.

Romania's harmonized index of consumer prices, or HICP, fell to 1.8% at the end of last month, from 2.1% in April.

The central bank targets an inflation rate of 2.5% in 2014, plus/minus one percentage point around the band. Last month, the bank revised slightly down its year-end forecast to 3.3% from 3.5% previously and said inflationary pressures were expected to remain at moderate levels in the next months.