Romania June CPI + 0.16% On Mo, +4.38% On Yr

In May, the annual rate was 4.42%.

Analysts estimated the monthly CPI would come in at 0.2% in June, while the annual inflation was seen slowing to 4.3%-4.4%.

Food prices inched down 0.1% on the month in June, but non-food and service tariffs increased 0.2% and 0.6% on the month respectively, INS said.

Romania’s harmonized index of consumer prices, or HICP, stood at 4.6% end-June, from 4.7% the month before.

The International Monetary Fund recently revised its target on Romanian annual inflation to 7.9% in 2010 from 3.5% previously, following the enforcement of a five-percentage-point increase in the sales tax rate to 24%.

Analysts forecast the higher tax would drive inflation up to 7% in July.