Statistics Institute: October’s inflation rate 1.06 pct

October’s monthly inflation rate was 1.06 pct, advancing slightly year-on-year (Oct. 2008 – Oct. 2007) to 7.39 pct from 7.3 pct in September, shows data published on Tuesday by the National Statistics Institute (INS).

The aggregate inflation rate over the first ten months of the year was 5.72 pct and the monthly average was 0.6 pct, as to 0.5 pct in 2007.

Compared to September 2008, foodstuff prices advanced 1.1 pct, non-food prices inched up 0.5 , whereas service tariffs climbed 2.2 pct. Compared to October 2007, foods grew 6.91 pct more expensive, service tariffs went up 7.92 pct and non-food prices climbed 7.58 pct.

Overall, the average price growth in the past 12 months (Nov. 2007 – Oct. 2008) from the previous 12 months (Nov. 2006 – Oct. 2007) calculated on the basis of the consumer price index (CPI) and of the harmonized consumer price index is 7.9 pct.

In early November, the National Bank of Romania (BNR) revised its 2008 inflation projection upwards from 6.6 to 6.7 pct; BNR took a similar step for the 2009 inflation projection, adjusting the figure from 4.2 to 4.5 pct.

The inflation target was further kept at 3.8 pct for 2008 and 3.5 pct for 2009, plus/minus one percentage point.
In its autumn forecasts, the European Commission amended its projection on Romania’s inflation rate by 0.2 percentage points for 2008 to 7.8 pct, and by 0.9 percentage points for 2009, respectively, to 5.7 pct, anticipating also a reduction of the annual rate to 4 pct in 2010.

The National Forecast Commission (CNP) expects the end-December 2008 annual inflation rate to stand at 5.8 pct and the average annual inflation rate to be 7.6 pct. AGERPRES