Average two-month inflation rate at 0.9 pct

The average inflation rate over the first two months of the current year stood at 0.9 percent, compared to 1.1 percent in the same period of 2009, shows data centralized by the National Statistics Institute (INS).

February's year-on-year inflation rate (February 2009 - February 2010) stood at 4.49 percent, down from the 5.2 percent attained in January. Compared to January, prices for food and non-food goods increased the most in February, by 0.24 percent, while service fees remained stable.

Compared to February 2009, food grew by 0.02 percent more expensive, service fees advanced 2.80 percent and non-food prices went up by 9.09 percent.

The overall price growth in the past 12 months (March 2009 - February 2010) against the previous 12 months (March 2008 - February 2009) determined on the basis of the CPI (consumer price index) and that determined on the basis of the harmonized index of consumer prices (HICP) is 5.3 percent.

The National Bank of Romania (BNR) revised upwards its inflation forecast for 2010 from 2.6 percent to 3.5 percent and estimates an inflation rate of 2.7 percent; one of the elements that weighed on the forecast was the increase in the tobacco excise duties. The contribution to inflation of CPI components shows an impact of 6.5 percent for tobacco products; 4.5 percent for fuels; 3.5 percent for vegetables, fruit and eggs; and 1.5 percent for administered prices.