Romania Keeps Inflation Under Control

Annual inflation in Romania rose to 1.21 per cent in April, up from the unprecedentedly low figure of 1.04 per cent recorded in March, the National Statistics Board, INS, said on Monday.

In spite of the increase, inflation remains below the central bank’s 1.5-3.5 per cent target.

The low inflation is mainly due to food prices which decreased by 2.29 per cent in April, compared to the same month last year, the INS said. Non-food product prices rose by 3.04 per cent in the same period, while prices for services were up 3.91 per cent.

The most significant price increases were registered for fuel, up 3.16 per cent, and tobacco, up 1.77 per cent, as a result of new tax excises.

Fuel prices rose due to the new 0.07 euro per litre excise that the Romanian government introduced on April 1.

In a related economic development, Romania's trade gap widened to an estimated 1.12 billion euro in the first three months of the year, increasing from 1.08 billion euro in 2013, the INS said.

In March alone, Romania's trade deficit shrank to 551.4 million euro from 570.2 million euro a year previously.