April inflation stops at 0.6%

The consumer price index progressed by a mere 0.6% in April, and the prices of foodstuffs did not increase by more than 0.3%, the year’s lowest, compensating for the 1% increase in service prices. Data from the National Statistics Institute (INS) shows that the decline in the price of eggs (12%) and potatoes (3.6%) made sure that overall foodstuffs prices were little different from March. At the same time, a 5% rise in the price of natural gases made a limited impact on the non-foodstuffs category, which were 0.7% more expensive than in March. The inflation was mostly fuelled by service costs. The National Statistics Institute data shows people in Romania spent 2% more on rent and telephone bills. Significant growth was similarly registered in the postal services, which became 1.7% more expensive. Prices in the first four months of the year increased 2.8%. If calculated relative to April 2003, the rate of inflation stands at 12.5%. The average for the first four months points to a significant inflationary decline as far as foodstuffs are concerned, with prices rising by only 0.5% each month. It was price rises in this sector that drove inflation up last year, averaging 1.4% per month. The authorities set out to attain a 9% inflationary target this year, in comparison to 14.1% in 2003. Mediafax