The annual inflation rate has dropped to 4.56 percent following a 0.04 percent overall increase in consumer prices in November due to fallback in prices of non-food products and services, according to the National Statistics Institute (INS).

The maximum inflation rate so far for this year, 5.33 percent, was reached in September, when consumer prices went up by 1.18 percent.

“In November 2012, the price of food products increased by 0.3 percent as compared to the previous month, while the price of  non-food products and service rates saw a 0.1 percent decrease each,” according to the INS.

Within the category of food products, eggs lead the way with an 8.07 percent price rise, while fresh and preserved fruit and vegetable prices took a 1.6 percent fall. Fuels are 1.5 percent cheaper, while rent, air transport fares as well as phone and TV subscriptions saw a modest less-than-1 percent price reduction.

“The overall average increase in prices for the past 12 months (December 2011 – November 2012), as compared to the previous 12 […] determined based on the harmonized consumer price index (IAPC) is of 3.3 percent,” according to the INS press release.

The National Bank of Romania (BNR) adjusted the inflation rate forecast for this year from 3.2 to 5.1 percent, one percent in excess of the initially targeted level, while the prognosis for 2013 was taken 0.5 points up, reaching 3.5 percent.

The BNR estimates that the inflation rate is likely to fall back within the targeted margin during the latter half of 2013, with an estimated 1.5 – 3.5 percent variation range for next year.

Ioana Jelea, ioana.jelea@romania-insider.com