Romanian Inflation Hits New Record Low Of 1.8% In April

05.11.2012 By Florentina Dragu

Romanian consumer prices inched up 0.07% on the month in April, but the annual inflation eased for a sixth consecutive month to a fresh all-time low of 1.8%, official data showed Friday.

Analysts estimated an annual rate of 2.2% in April, down from 2.4% a month earlier.

Food prices edged down 0.1% on the month in April, but non-food and service prices increased 0.2% each, the statistics institute INS said.

Romanians paid by 16% less for eggs in April compared with a month earlier, while the cost of fresh and canned vegetables inched down 0.4%.

On the other hand, fuel prices increased 0.6% on the month, while healthcare and transport services were up 0.4% and 0.2%, respectively.

Romania's harmonized index of consumer prices, or HICP, fell to 4.1% at the end of April, from 4.6% 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.