Annual inflation rate drops to 3.4pct in October 2019

Romania's annual inflation rate slightly decreased to 3.4 percent in October 2019, from 3.5 percent in September, in the context of food stuff prices increasing 4.16 percent and those of non-food goods by 2.57 percent, while the price of services recorded an advance of 4.14 percent, according to the data published by the National Institute of Statistics (INS) on Tuesday. 

"In October 2019 compared to October 2018, consumer prices increased by 3.4 percent. The annual rate calculated based on the harmonised index of consumer prices (HICP) stands at 3.3 percent. The average rate of consumer prices in the past 12 months (November 2018 - October 2019) against the previous 12 months (November 2017 - October 2018), calculated based on the consumer price index (CPI) stands at 3.7 percent. Determined based on HICP, the average rate is 3.8 percent," the INS mentions. 

The National Bank of Romania (BNR) decreased the inflation forecast for the end of 2019 to 3.8 percent and estimated a 3.1 percent inflation for next year, BNR Governor Mugur Isarescu announced on 8 November, when presenting the Quarterly Inflation Report. 

In August 2019, the BNR estimated a 4.2 percent inflation for the end of 2019 and 3.4 percent for December 2020. 

The International Monetary Fund (IMF) revised upwards the forecast on consumer prices in Romania in 2019, to an average annual growth of 4.2 percent against a 3.3 percent increase estimated in the spring, whereas in 2020 consumer prices are to go up 3.3 percent against a 3 percent growth as estimated in the spring.