Romania’s Oct Inflation 1.06% M-M, 7.39% Y-Y; Higher Prices For Services, Food

In October, prices for services were up 2.23% on the month, while food products saw their prices up 1.14% on the month. Non-food products saw a 0.52% increase of their prices.

Of food products, prices for eggs jumped 9.9%, while cheese price was up 3.45% on the month. Prices for vegetables picked up 3.66% on the month.

The telephony prices increase of 3.35% was the most influential in the services sector, followed by a 1.92% increase in rents.

Romania’s central bank has recently revised its inflation projection for the end of this year to 6.7%, from 6.6%.

However, in January-October, inflation picked up 5.72%, already exceeding the target set by the central bank at the beginning of the year of 2.8%-4.8%.

For 2009, the central bank has set an inflation target of 2.5%-4.5%.