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Annual inflation in Romania drops to 6.61pct in March 2024
The annual inflation rate in Romania dropped in March 2024 to 6.61%, from 7.23% in February, as prices for foods increased by 2.81%, for non-foods by 8.06% and for services by 10.20%, according to data with the National Institute of Statistics (INS) published on Thursday.
The consumer price index in March 2024 as against February 2024 was 100.42%. The inflation rate at the beginning of the year (March 2024 as against December 2023) was 2.4%. The annual inflation rate in March 2024 was 6.6% y-o-y. The average rate of change in consumer prices in the last 12 months (April 2023 - March 2024) as against the previous 12 months (April 2022 - March 2023) was 8.5%.
The March 2024 Harmonised Index of Consumer Prices (HICP) as against February 2024 was 100.45%. The annual inflation rate in March 2024 compared to March 2023 calculated against HICP was 6.7%. The average rate of change in consumer prices over the past 12 months (April 2023 - March 2024) compared with the previous 12 months (April 2022 - March 2023) based on the HICP was 8.3%.
The National Bank of Romania (BNR) has revised downwards, to 4.7%, its end-2024 inflation forecast, from 4.8% in November, expecting it to further decrease to 3.5% at end-2025, according to data released in February by National Bank of Romania (BNR) Governor Mugur Isarescu.
The inflation trajectory has been revised downwards in 2024 to account for more favourable recent developments of the indicator, especially on the food segment.
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Investments increase the economy and, in particular, investments in large infrastructure are the solution to reduce the gaps in less developed areas, Prime Minister Marcel Ciolacu said, stressing that official data show that the vision proposed to Romanians when he took office as prime minister was correct.
"Facts: the annual inflation rate fell to 6.6% in March from 7.2% in February - INS. Romania's GDP in 2023 reached the highest level in the country's history, over 1,600 billion lei - INS. The number of Romanians in extreme poverty (severe material and social deprivation) fell by 855,000 in 2023 compared to 2022 - Eurostat. The official data shows that the vision proposed to Romanians when they took office as prime minister was the right one. Investments increase the economy and, in particular, investments in large infrastructure are the solution to reduce the gaps in less developed areas," said Marcel Ciolacu, in a post on his Facebook page on Thursday.
He added that the government's main objective was to increase purchasing power, especially for those on low incomes.
"We have attacked the unreasonable rise in prices by capping the price of utilities and the commercial margin on basic foodstuffs and, at the same time, we have come up with active measures to increase the incomes of employees (by increasing the minimum wage) and pensioners (by increasing pensions), through support packages for the vulnerable (vouchers for utility bills and food)," Ciolacu added.
The annual inflation rate fell to 6.61% in March 2024, from 7.23% in February, as food prices rose 2.81%, non-food prices went up 8.06% and services costs increased 10.20%, according to data from the National Institute of Statistics (INS) published on Thursday.
"The consumer price index in March 2024 compared to February 2024 stood at 100.42%. The year-to-date inflation rate (March 2024 compared to December 2023) was 2.4%. The annual inflation rate in March 2024 compared to March 2023 was 6.6%. The average rate of change in consumer prices in the last 12 months (April 2023 - March 2024) compared to the previous 12 months (April 2022 - March 2023) was 8.5%," the INS release said.