The annual inflation rate remained negative in July, at -0.8%, according to data from the National Statistics Institute (INS). In June, the inflation rate stood at -0.7%.

When compared to June, the consumer prices dropped by an average of 0.24% in July this year. However, the evolution was different based on categories. While the food prices went up by 0.04% on average, the non-food products were 0.52% cheaper, and the services’ prices decreased by 0.1%.

The potatoes registered the biggest month-on-month drop in prices in July, of 11.4%, followed by natural gas –3.48%, electricity – 1,48%, telephone – 0.77%, and air transport – 0.77%. On the other hand, the biggest price increases were registered by citrus fruits – 6.12%, and fresh fruits – 2.55%.

Year-on-year, the consumer prices dropped by an average of 0.78% in July 2016. Food prices went up by 1.25% in this period, non-food products got 2.2% cheaper, and services had 0.93% lower prices.

Romania’s central bank revises down inflation forecast

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