Price hikes push inflation up

The inflation rate went up to 1.2% in November, leading to an annualised inflation of 8.7% one month before the end of the year, according to data published by the National Statistics Institute. The growth in prices by over one percent in November was caused by the adjustment of some controlled prices, specifically thermal power rates, with the gigacalory becoming 20% more expensive this month. “The November estimate was of some 0.6-0.8%. There are usually no price hikes in November. The explanation is that the price increases were done sooner than scheduled. The return of the monthly inflation rate to the bracket of more than 1% is exactly what we did not need, and comes at the same time as the slowdown of GDP growth. The data shows the lack of proper restructuring in the economy. The companies manufacturing here see competition from imports. They are better off buying from abroad and selling here,” says Lucian Liviu Albu, the director of the Forecast Institute of the Romanian Academy. Foodstuffs witnessed price rises of 1.2% in November, due to this year”s floods, and failed to compensate for the increase in controlled prices. The 8.7% inflation rate in November exceeded the fluctuation corridor allowed by the target of the National Bank, after annualised inflation was kept at less than 8.5% in September and October. ZF