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Romania's annual inflation rate reaches highest level in four years

12 October 2017

Industrial production grew at a nine-month high of 4.3 per cent in August, mainly on account of robust performance of mining and power sectors coupled with higher capital goods output, official data showed today.

Meanwhile, the index of industrial production (IIP) increased to 4.3 per cent in August against July's figure of 1.2 per cent. Services prices fell by 0.16% year-on-year.

In July, factory output growth had recorded a revised 0.9 per cent growth.

The data revealed the overall food inflation moderated to 1.25 per cent in September from 1.67 per cent in the previous month.

Capital goods output, which is the barometer of investment, rebounded by 5.4 percent from a growth of 0.5 percent a year ago.

Earlier this month, the RBI left interest rates unchanged, after cutting the key rate by 25 basis points in August, while raising its retail inflation projection for October-March to a range of 4.2 to 4.6 percent, and lowered its economic growth estimates.

The industry group "Manufacture of computer, electronic and optical products" has shown the highest positive growth of 24.9% followed by 16.5% in "Manufacture of pharmaceuticals, medicinal chemical and botanical products" and 11.1% in "Manufacture of other transport equipment".

Underlying inflation also remained stable at 2.3 percent September.

There is no room or scope for further easing rates for at least 3-4 months.

Additionally, the Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined stood at 1.25% compared to 1.52% of August 2017 and 3.96% of September 2016.

Romania's annual inflation rate reaches highest level in four years