Romania's annual rate of inflation slips to 5.86% in Jun

The annual rate of inflation in Romania lowered to 5.86 percent in June from 5.95 percent in May, on cheaper food products and a tempered hike of prices for non-food stuff and services, data of the country's statistics body INS show.

Such a low level of inflation was last reached in August 2007, when the annual index of consumer prices stood at 4.96 percent.

Moreover, consumer prices rose in June by 0.2 percent on the previous month. Prices for food stuff slipped 0.18 percent, non-food products saw their prices up by 0.42 percent and tariffs for services upped on average 0.43 percent, NewsIn states.

The consumer basket in Romania, which is used to calculate inflation, features food products with a weight of 37.58 percent, non-food stuff with 44.05 percent and services with 18.37 percent.

The largest price hikes were reported in June for potatoes (6.11 percent) and fresh fruits (4.40 percent), but most food products increased insignificantly or even cheapened.

Prices for vehicles and spare parts climbed 0.31 percent in June, price for gas idled, as well as that for electricity and head. However, fuels were 2.14 percent more expensive and tobacco saw a 0.10 percent rise in price.

On the services side, rents slipped on average by 0.07 percent in June but upped 2.69 percent since the beginning of the year.

Romania’s central bank BNR set a yearly inflation target of 3.5 percent, take or leave one percentage point. However, the last prognosis points to a 4.4 percent level at yearend, slightly revised from the previously set target.

At the end of last year the annual rate of inflation slipped to 6.3 percent over the BNR aim of 3.8 percent. Romania should keep a close eye on inflation as reaching the targets is crucial, an official of the International Monetary Fund (IMF) recommended after the institution agreed to grant an external loan to help prop up the economy and restart engines.

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