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Annual inflation rate dips to 2.7% in August
The annual inflation rate dipped to 2.7% in August this year, from 2.8% in July, given that foodstuff prices rose by 5.45%, service prices advanced by 2.97%, and non-food prices picked up by 0.75%, according to data published on Thursday by the National Institute of Statistics (INS).
"Consumer prices in August 2020 increased by 2.7% compared to August 2019. The annual rate calculated on the basis of the Harmonized Index of Consumer Prices (HICP) is 2.5%. The average rate of consumer prices in the last 12 months (September 2019 - August 2020) compared to the previous 12 months (September 2018 - August 2019), calculated on the basis of the CPI, is 3.1%. Determined on the basis of the HICP, the average rate is 2.9%," shows INS press release.
The annual CPI inflation rate for the end of this year and next year is forecast at 2.7% and 2.5%, respectively, according to the Inflation Report published by the National Bank of Romania (BNR).
"The estimated contribution of the change in indirect taxes is 0.2 percentage points at the end of this year and 0.4 percentage points at the end of next year. The average annual rate of CPI inflation will continue its downward trend from the first half of this year, but at a slower pace, being expected to reach 2.5% at the Q2 2022 projection horizon," mentions the report.
According to the BNR, compared to the previous report, there are only minor revisions for the annual CPI inflation rate. The value anticipated for the end of the current year is by 0.1 percentage points lower, following the downward revaluation of the contribution of the exogenous components of the consumption basket, which counterbalances the projection on this horizon of slightly higher values for the core inflation. For the end of next year, the forecast is similar to the previous one.