Consumer prices in Romania went down by 3% from May 2015 until May 2016, due to the VAT rate cuts. Thus, Romania posted the lowest annual inflation rate in the European Union, -3%, down from -2.6% in April.

The average annual inflation rate in the Eurozone and the European Union stayed in a negative territory in May for the second month in a row, at -0.1% (up from -0.2% in April), according to EU’s statistical office Eurostat.

In May, 16 member states recorded negative annual inflation rates. Romania ranked first, followed by Bulgaria (-2.5%), and Cyprus (-1.9%). At the opposite end, Belgium saw the highest annual inflation rate in May, of 1.6%, followed by Malta (1%), and Sweden (0.8%).

Compared to April this year, the annual inflation rate dropped in nine member states, stayed stable in eight countries and rose in 11 states.

editor@romania-insider.com