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Romanian Feb CPI +0.7% On Mo, +7.97% On Yr

Romania’s consumer price index rose 0.7% on the month in February, on higher utility prices, taking the annual rate to 7.97%, its highest level since March 2006, the National Statistical Institute, or INS, said Tuesday.
Romanian Feb CPI +0.7% On Mo, +7.97% On Yr
11 mart. 2008, 10:41, English
The February inflation rate slowed down from January, when prices rose 0.86% on the month. In the first two months, the inflation rate was 1.57%, while average inflation stood at 5.5% in February.
 
Romania’s February monthly inflation rose due to a robust 1.08% increase in non-food prices driven by higher gas bills, which grew 8.5% starting with Feb 1.
 
Prices for food rose 10.16% on the year and a slight 0.3% on the month, while prices for services were also up 9.85% on the year and rose 0.5% on the month in February, the INS said.
 
For 2008, the Romanian central bank has set an inflation target of 2.8%-4.8%. However, analysts say prices might register double-digit growth this year, if Romania’s farming output is again hit by drought or floods.
 
In February, the bank revised its year-end inflation forecast and said the country’s consumer price index will rise 5.9% this year, 1.6 percentage points more than its previous forecast.
 
It cited persistent inflationary shocks as the reason for the revision. The inflation rate spiked in the second half of 2007, with the CPI exceeding the central bank’s target band, and accelerated to 6.57% at the end of last year, boosted by significant growth in food and services prices.