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Eurostat: Romania had second negative inflation in EU in January
In January Romania had the second negative inflation out of 28 EU member states, with a rate of minus 1.5%, double the one of 0.7% recorded in December 2015, according to data published by the European Statistical Office (Eurostat) on Thursday. According to the mentioned source, the annual inflation rate in EU remained stable at 0.2%, while in the euro zone it climbed to 0.3% in January, from 0.2% in December. Ten member states recorded negative annual inflation rates, the first two places being held by Poland (minus 1.7%) and Romania (minus 1.5%). At the opposite pole we find the highest annual inflation rates in Belgium (1.8%), Austria (1.4%) and Sweden (1.3%).
Compared to December 2015, the annual inflation rate dropped in 12 member states, Romania included, remained stable in 2 countries and increased in 14 states.
In the euro zone, the most significant impact on price increases was held by restaurants and coffee shops (0.10% increase), followed by cigarettes and fruit (0.06% increase). On the other hand, the most significant negative impact on inflation came from fuel for transport (minus 0.28%), fuel for heating (minus 0.18%) and natural gas (minus 0.11%).
The Central European Bank counts on a price increase of less than 2%. But inflation in the euro zone has been below that target since 2013, while last year it dropped to the negative area when oil prices went down significantly.
In Romania, data published by the National Statistics Institute (INS) show that the consume price index was minus 2.1% in January 2016 compared to January 2015.
However, BNR modified to 1.4% the inflation prognosis for the end of 2016, on the rise by 0.3% against the previous prognosis of 1.1%. BNR governor Mugur Isarescu recently declared that he expected a harsher monetary policy earlier than foreseen, when inflation has come back.