Low monthly inflation

The inflationary rate in May reached 1.7%, the lowest level since the beginning of the year, due to the slowdown of the increase in the prices for foodstuffs and service tariffs.

Compared with the beginning of the year, inflation went up 13% though, all the more reason to question the Government’s 27% target.

Effective immediately, the monthly inflationary rate should keep below 1.7%, which is highly unlikely because of the union pressures to have salaries increased (already accepted by SNCFR – the National Railway Company), a new increase in the power price as of July 1 and the effects of the hail, which has already dimmed the good prospects for the wheat output.

Compared with May 2000, the inflation reached 37.4%. The foodstuff prices last month rose 1.9% while the service tariffs went up 1.4%. At the same time, non-foodstuffs prices increased 1.8%.

Potatoes of all foodstuffs registered the highest rise in prices, that is 14.2%, while fresh fruit cost 7.9% more.

Beef price increased 5.2%, pork was 4.3% more expensive and foul went up 7%. Medical articles and drugs rose in prices by 3.3% each, while power tariffs were 3.1% higher.

The main services to have increased in prices were personal care and cosmetics – 3.1%, postal – 2.5%, accommodation in hotels – 4.3%, as well as water, sewer and sanitation services – 1.5%. The rent for the state-owned housing went up 3.7% during the same interval.