Romania registers highest inflation rate in the EU in June

In June 2009 Romania has registered the highest annual inflation rate in the European Union (5.9 per cent) for the third consecutive month, according to a revised estimate published on Wednesday by the European Statistics Office (Eurostat). In the European Union the annual inflation rate has dropped to 0.6 per cent.

In June 2009 the lowest annual inflation rates were registered in Ireland (-2.2 per cent), Portugal (-1.6 per cent), Belgium, Spain and Luxembourg (-1 per cent each). Romania is at the opposite end, registering an inflation rate of 5.9 per cent and being followed by Poland (4.2 per cent) and Lithuania (3.9 per cent). Compared to the previous month, in June 2009 the annual inflation rate dropped in 21 EU member states, remained stable in four member states and rose in a single country. When it comes to the Euro Area, Eurostat has confirmed a quick estimate publicized on June 30 and according to which in June 2009 the Euro Area registered a negative inflation of -0.1 per cent for the first time since the launch of the Euro in 1999. The European Statistics Office underlines that this situation is registered because of the price drop registered by transportation fuel and heating fuel. In July last year a barrel of oil was sold for USD 147. A barrel of oil is currently sold for less than half of that, namely for USD 60, in the context in which the oil demand has fallen dramatically because of the global recession.

According to the data published by the National Statistics Institute, the monthly inflation rate in Romania stood at 0.2 per cent in June, while the annual inflation (June 2008 - June 2009) dropped to 5.86 per cent from 5.95 per cent the month before. According to the INS, the average monthly inflation rate from January 1 to June 30, 2009 stood at 0.5 per cent compared to 0.6 per cent in the same period last year.

In Q1 of 2009 the inflation rate stood at 3.14 per cent. The National Bank has revised downwards by 0.1 per cent its inflation projection for 2009, from 4.5 per cent to 4.4 per cent. Likewise, its inflation projection for 2010 was revised downwards by 0.4 per cent from 3.2 per cent to 2.8 per cent.

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