Romania Jan CPI +0.8% On Month, Annual Inflation Eases To 7%

In December, the annual inflation peaked at 7.96%, mostly driven by a higher sales tax.

Analysts estimated a monthly inflation of 0.6% in January, while the annual rate was predicted at 6.8% on average.

Food prices increased 1.1% on the month in January, while non-food prices were up 0.8%, INS data showed. Prices in the services sector inched down 0.1% on the month.

Romania’s harmonized index of consumer prices, or HICP, stood at 6.2% at the end of January, slightly up from 6.1% the month before.

The central bank targets an annual inflation of 3% at the end of 2011, plus/minus one percentage point around the band. The bank has recently revised upward its forecast on the annual rate to 3.6% in December, from 3.4% previously.