Romania registered an inflation rate of 5.37 percent in June and the consumer prices were flat against the previous month.

The average price increase in the last 12 months (August – July 2013) against the previous 12 months was 5.1 percent, based on the Consumer Price Index (CPI), according to the National Statistics Institute (INS).

In July, food prices lost 1.6 percent, while non-food prices and services added 0.5 percent and 0.3 percent, respectively.

“The size of the disinflation in July exceeded our expectations and of other analysts,” said Eugen Sinca, BCR analyst, quoted by Agerpres newswire. He explained the monthly inflation was negative in July, which lead to a reduction of the annual inflation rate to 4.4 percent. He expects the inflation to reach 2.5 percent in December and further fall to 1.4 percent in 2014.

Last week, central bank governor Mugur Isarescu said the inflation rate should enter in the targeted variation band of 2.5 percent starting September and should stay there until the second quarter of 2015.

The central bank projects an inflation of 3.1 percent for at the end of 2013 and of 2014. (source: business-review.eu)