By Andra Beltz
Consumer prices continued to increase in November 2017, while the annual inflation rate went up to 3.23 percent from 2.6 in October amid prices of food products rising by 3.88 percent and prices of non-food by 4.12 percent, according to data of the National Institute of Statistics (INS) published on Tuesday.
Compared to November 2016, the prices of services dropped by 0.10 percent.
'The average rate of consumer prices over the last 12 months (December 2016 - November 2017), Y-o-Y, calculated against the CPI [consumer price index] stands at 1.0 pct. Determined on the Harmonised Index of Consumer Prices (HICP) basis, the average rate is 0.9 percent,' reads the release.
Compared to October 2017, prices went up by 0.66 percent in November, given that prices of food products increased by 0.57 percent and those of non-food products by 0.86 percent, while service tariffs increased by 0.33 percent.
The National Bank of Romania (BNR) revised upwards to 2.7 percent the inflation forecast for the end of this year, given that it had previously estimated a 1.9 percent inflation rate.
For the end of 2018, BNR estimates a 3.2 percent inflation rate, as compared to 3.1 percent previously estimated.
According to the BNR, the exceedance of the upper limit of the target range in the first half of 2018 is mainly due to basic statistical effects associated with indirect fees and taxes cuts at the beginning of 2017, as well as to the anticipated development of exogenous components, but also to the accumulation of inflationary pressures associated to the domestic environment, at the level of basic inflation.
Computed for steady taxes, the inflation rate will reach 3.3 percent in December 2017, 3.1 percent at the end of 2018, and 2.9 percent in September 2019.