The growth in consumer prices slowed down in Romania, to a yearly inflation rate of 2.8 percent in January this year, from 3.2 percent in the last month of 2011, shows a recent Eurostat report. The EU area reported a 2.9 percent inflation in January.

Romania managed to avoid an increase in inflation last year, when other countries in Europe, like France and Germany saw consumer prices go up. Romania started 2011 with an annual inflation rate of 7 percent, according to Eurostat, but the figure gradually decreased over the year. The monthly inflation rate, meaning the increase in consumer prices month to month, was of 0.4 percent on average in Romania last year, lower than the 0.6 percent at EU level.

Sweden posted the lowest annual inflation in the EU, at 0.7 percent in the first month of this year. The highest was in Hungary, 5.6 percent, up from 4.1 percent in December. Eurozone inflation narrowed to 2.6 percent in January, from 2.7 percent in December.

Housing prices, transport, alcohol and tobacco posted the highest price hikes in the EU in January, with 4.5 percent, 4.4 percent and 3.8 percent respectively. Prices in the communications sector in the EU were down by 2.4 percent in January this year, compared to January 2011.

The full inflation report here.

editor@romania-insider.com