Annual inflation in Romania slows at 6.71% in March on higher prices for non food goods

Analysts NewsIn polled anticipated annual inflation in March at 6.4 percent – 6.6 percent, counting on the national currency’s stabilization and on the lower demand. The inflation rate in March stands at similar level to January’s rate.

Consumer prices added 0.50 percent in March after non food products were 0.68 percent more expensive and food stuff prices increased by 0.39 percent. Tariffs for services, calculated in euros but paid in lei, rose by 0.33 percent, INS showed.

The highest price increases were registered in March at exotic fruits (8.28 percent), tobacco (3.59 percent) and sugar (1.71 percent). Fuels were 0.70 percent more expensive. On the other hand, prices for eggs and oil lost 5.11 percent and 3.18 percent respectively.

Rents were 0.11 percent more expensive in March over February. Prices for cars and auto parts fell by 0.29 percent in the same period.

Romania’s central bank (BNR) targets a 3.5 percent annual inflation in 2009, plus or minus one percentage point. However, the last prognosis indicates a level of 4.5 percent for the year-end inflation.

At the end of last year the annual rate of inflation had slipped to 6.3 percent, below BNR’s target for year-end rate of 6.7 percent, but way above the annual aim of 3.8 percent, take or leave one percentage point.

The head of the International Monetary Fund (IMF) mission in Romania, Jeffrey Franks, warned authorities at the end of March that reaching the inflation target this year and keeping it at a sustainable level the next years are crucial.

Romania’s schedule to enter the Eurozone set the accession for 2014. However, before driving on that road the country has to keep both inflation and the budget deficit inside boundaries settled under the Maastricht criteria.