Annual inflation hits 9.04% in July below estimates on lower prices for food, services

Annual inflation in Romania grew to 9.04 percent in July below the analysts’ estimates after food stuff and services cheapened which partially offset the hike of administered prices, the country’s Statistics Institute (INS) announced today.

In June inflation stood at 8.61 percent, a slight increase over the May level of 8.46 percent. Analysts NewsIn had interviewed pointed to an inflation rate of 9.2-9.4 percent for July.

The last time inflation jumped over the 9 percent threshold was in June 2005. Consumer prices added 0.69 percent over the previous month.

Inflation grew below estimates helped by cheaper prices for foodstuff and services which partially offset the significant increase of prices for gas and electricity which entered into effect starting July.

At the end of June the power market regulator ANRE announced that prices for natural gas delivered to the population would increase 12.5 percent and those for electricity 4.4 percent starting July 1.

Food items cheapened 0.68 percent in July over June and services 0.3 percent. In Romania telephone bills and tariffs for services are calculated in euros and paid in lei. The national currency advanced 2.09 percent from a reference exchange rate of 3.6557 lei/euro in June to 3.5792 in July.

Tariffs for services and air transportation dropped 2.06 percent in July, INS announced.

The country’s central lender BNR revised the inflation prognosis for the end of the year from 6 percent to 6.6 percent considering an inflation target of 3.8 percent plus or minus one percentage point.

The new estimate takes into account an annual average oil price of 140 American dollars per barrel.

NewsIn