Consumer prices in Romania fell by 0.34 percent in July this year over the previous month, as prices of food decreased by 1.6 percent, according to the country’s National Statistics Office INS. Meanwhile, the annual inflation rate went down to 4.41 percent.

The biggest price decrease in food items was recorded for vegetables and tinned vegetables - down over 13 percent.

Compared to June 2013, prices for non-food goods went up 0.5 percent, while the service tariffs only increased by 0.3 percent, according to the recent data provided by INS. For non-food goods, the largest price increases were recorded for tobacco and cigarettes - up 8 percent compared to December 2012, followed by gas and electricity - up some 7 percent.

Romania’s annual inflation rate was of 5.37 percent in the first half of the year, close to what the Romanian Central Bank BNR had forecasted. In June, the monthly inflation rate was of only 0.01 percent.

BNR recently revised the economic growth forecast this year to more than 2 percent, based on changes in exports, industrial production and on the good agricultural year.

Irina Popescu, irina.popescu@romania-insider.com