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Romania October CPI +0.5% On Month, +7.9% On Year

Romanian consumer prices rose 0.55% on the month in October, largely driven by higher food and service prices, while the annual inflation accelerated to a fresh two-year high at 7.88%, the country’s statistics institute INS said Wednesday.
Romania October CPI +0.5% On Month, +7.9% On Year
Oana Gavrila
10 nov. 2010, 10:29, English

A higher rate was registered in August 2008, when the country’s annual inflation was 8.02%.

The October inflation was in line with market estimations of a monthly increase between 0.4% and 0.7% and an annual rate of 7.3%-8.1%.

Food prices increased 0.8% on the month in October, while services and non-food prices were up 0.7% and 0.3%, respectively, INS data showed.

Edible oil and vegetable prices posted the highest rises in the food sector in October, of 4.82% and respectively 4.12%, while the services sector was mostly impacted by a 4.9% increase in transportation tariffs at the state-run passenger rail company CFR SA.

Romania’s harmonized index of consumer prices, or HICP, stood at 5.5% end-October, up from 5.2% the month before.

Romanian central bank revised up its forecast for the 2010 inflation to 8.2% from 7.8%, citing a higher-than-expected negative contribution from a 5 percentage point increase in the sales tax to 24% in July.

According to estimates of the International Monetary Fund, the annual rate could peak slightly above 8% in December this year, before easing toward the central bank’s band of 3% plus/minus one percentage point in 2011.