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Romania's annual inflation speeds up in Dec

Romania's annual inflation speeds up in Dec 3DDock/Shutterstock.com

BUCHAREST (Romania),  January 12 (SeeNews) - Romania's annual consumer price inflation accelerated to 3.3% in December, from 3.2% in November, the national statistical office, INS, said on Friday.

Food prices rose 4.07% year-on-year in December, while non-food prices were up 4.11%, INS said in a statement.

Prices of services edged up by 0.22% year-on-year in December.

On a monthly comparison basis, Romania's consumer price index (CPI) rose 0.32% in December, as food prices climbed 0.44% month-on-month, non-food prices increased by 0.28% and prices of services rose 0.21%.

Average annual inflation in 2017 was 1.3%.

Romania returned to inflation in January 2017, following 19 straight months of deflation that began in June 2015 after a 9% cut in VAT rate was expanded to include all food items, non-alcoholic beverages and food service activities. In addition, Romania cut its standard VAT rate from 24% to 20% at the start of 2016 and then again to 19% starting January 2017.

Romania's central bank, BNR, increased its monetary policy rate to 2.0% from record low 1.75% earlier this week, the first rate hike in a decade. The central bank raised the deposit facility rate to 1.0% per annum from 0.75% per annum and the lending facility rate to 3.0% per annum from 2.75% per annum.

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