Romania’s Aug CPI -0.19% MM, Annual Inflation Narrows To 4.96%

This is the second consecutive decline in monthly inflation, while the annual inflation decelerated for the sixth month in a row, touching the lowest level in two years.

In July, Romanian consumer price index fell 7 basis points on the month, also driven by lower food prices.

Food prices in August fell 1.1% from the previous month, while non-food and services prices were up 0.3% on the month each.

The drop in food prices was mainly due to cheaper vegetables (-5.9% from July), fruit (-6.8%) and edible oil (-0.88%).

The highest increase in the non-food sector was posted by energy prices, which rose 0.7% on the month in August. In the services sector, the highest price increase was seen at the utilities, where prices went up 1.4% on the month.

The harmonized index of consumer prices, or HICP, stood at 6.4% at the end of August, from 6.6% the month before.

Compared with the end of 2008, the consumer price index was up 2.87% in August.

In the January-August period, service prices rose 5.44%, non-food prices increased by 4.64%, while the food prices fell 0.36%.

Early August, Romania’s central bank revised its forecast on the 2009 annual inflation rate to 4.3%, from 4.4% previously estimated.