The VAT increase caused a radical price boom. Cigarettes have gotten 25 prc more expensive in just 7 months
Publish date: 12-08-2010The VAT increase from 19 to 24% made the yearly inflation rate boom from 4.38% in June to 7.14% last month. The largest price hikes were for cigarettes, fruits, utilities and electricity
Last month, Romanians bought cigarettes that were 25.5% more expensive than they were in December 2009, the prices of citrus fruits and other meridional fruits went up 14%, and those of fresh fruits 13.75%. The July 1st VAT increase from 19 to 24% caused the inflation rate to boom, reaching 7.14% as compared to the 4.38% it was at a month before.
As compared to June, the July inflation rate was 2.58%, and as compared to the end of last year it was 4.42%. On Friday, the National Bank of Romania revised the inflation forecast for 2011, from 2.8% to 3.1%, after it increased the estimate for this year from 3.7% to 7.8%, as a result of the VAT increase.
Latest News:
- Insurance market stagnated in 2013 while GDP chare dropped to 1.3%
- The Romanian Leasing Market as of December 31, 2013
- Millennium Bank reports best results since its launch, helped by stronger banking income and cost cuts
- BCR cheapens First Home loans and lowers interest loans for loans in lei
- Millennium Bank's new Salary account clients receive up to 600 lei bonus and their utility bills' payment
- GarantiBank and Seamless introduce SEQR in Romania: the newest mobile payment solution
- Bancpost telecom services, now provided exclusively by Romtelecom and COSMOTE Romania
- Millennium Bank cards offer discounts in Domo stores
- BCR Supervisory Board reshuffles Management Board
- NBR decide to lower the monetary policy rate to 4.25 percent per annum
- Common appointments in Romtelecom and COSMOTE Romania
- Up to 5.5% annual interest rate for Millennium Bank's promotional three-month lei deposit
- Eurozone in recovery mode but gap between North and South still widening
- UniCredit Tiriac Bank and RBS Romania announce the successful completion of the retail clients' migration
- Millennium Bank grants First House loans in lei