The annual inflation decreases; the food prices increase

The annual rate of inflation has decreased in February at a new historical minimum, fewer than 2, 6 per cent. Despite this, some aliments are more expensive in medium with 4, 6 per cent.

The data published on Monday by the National Institute of Statistics( INS) show that, during the last year, the general costs have increased in medium with five per cent.

Despite the thing that the annual rate of inflation has increased in February at a new minimum historical –under 2, 6 per cent –the food is again more expensive in medium with 4, 6 percent.

According to National Institute of Statistics (INS), in February the prices have recorded a growth with 0,64 percent than the previous month, based on the increase of the alimentary products prices with 1,2 percent and of those non-alimentary with 0,4 per cent.

The increase of the services prices was only of 0,1 per cent.

The biggest price increases were recorded at eggs –12,7 per cent –at vegetables and fruits.
The only product, from the alimentary category, whose price has decreased in February than the previous month was the bee honey, while, regarding the non-alimentary products, only the fridges and the freezers have cost less with 0,05 per cent.

The meteorological conditions influence the inflation

The economic analyst, Aurelian Dochia, states that the price increases at vegetables, fruits and other alimentary products were determined most probably by the unfavorable meteorological conditions.

“In February, the situation was very much influenced by the very unfavorable weather, which perhaps had a pressure on the prices of the non-alimentary products, which indeed have recorded a bigger growth than it was expected.

We have to see, furthermore, if it was only a conjectural situation, due to the season, or it is a more general pressure.

However, within the next months, it is clear that we will assist at a resumption of the trend of inflation increasing.

The evolution that we observe now is, however, in the parameters that are provided also by the National Bank( BNR) , which has already established that, after a decrease at the minimum historical level of the inflation, will follow a slight trend of growing, so that it is expected that, at the end of the year, the inflation for December to be around over 3 per cent.

The National Bank hopes it to be 3,2 percent, but it is possible to be even more than that”, declared Aurelian Dochia.

The National Bank of Romania has established, for this year, a target of inflation of 3 per cent, plus minus one percent.

Alexandra-Diana Mircea
MTTLC, Bucharest University