Romanian Inflation Flat At 1.8% In May

06.11.2012 By Florentina Dragu

Romanian consumer prices inched up 0.2% on the month in May, while the annual inflation stabilized at 1.79% after six consecutive months of easing, official data showed Monday.

In April, the country's annual rate decelerated to an all-time low of 1.8%, from 2.4% a month earlier.

Food prices were roughly flat on the month in May, but non-food and service prices increased 0.2% and 0.5%, respectively, the statistics institute INS said.

Romanians paid by 20% less for eggs in May compared with a month earlier, while the cost of dairy products inched down 0.25%. Still in the food sector, fresh and canned vegetables were 2.14% costlier on the month in May, while the price of fresh fruit increased by around 5%.

Fuel prices advanced 0.7% after a 0.6% increase in April, while postal and telecom services rose 1% on the month, the data showed.

Romania's harmonized index of consumer prices, or HICP, fell to 3.5% at the end of May, from 4.1% the month before.

The central bank targets an annual inflation of 3% at the end of 2012, plus/minus one percentage point around the band. The bank estimates the annual rate will peak to 3.8% in September before stabilizing at around 3% in the fourth quarter.