Consumer prices increased by 0.9% in July, and the annual inflation edged down marginally under 15% YoY from just over 15% YoY in June, Romania's statistics office INS announced.

The prices of food increased by 16.1%, those for non-food goods (including fuels and energy) by 16.6% YoY and the average fees paid for services increased by 8.3% YoY.

There are several reasons for which annual inflation has slowed down. The base effect is one, but consumption also weakened, curbing the demand-side inflationary drivers.

"The evolution is consistent with our central scenario, against the background of the gradual dissipation of the impact of supply shocks and the accumulation of signals indicating a certain correction of the real economy," according to Andrei Rădulescu, chief economist of Banca Transilvania.

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iulian@romania-insider.com