Annual inflation rate up to 7.9% in October

The annual inflation rate in October 2021 compared to October 2020 is 7.9%, while consumer prices were up 1.8% in October 2021 from September 2021, according to the latest “Inflation and Evolution of consumer prices” report conducted by the National Institute of Statistics.

The inflation rate since the beginning of the year (October 2021 compared to December 2020) is 7.4%. The average consumer price rate over the last 12 months (November 2020-October 2021) as compared to the
previous 12 months (November 2019-October 2020) is 4.1%.

Gas prices have increased the most, and Romanians paid almost 46% more last month than in October 2020. From the basket of consumption taken into account by the INS, there is no product or service that has not become more expensive.

Romania has recorded the largest price increases since 2008. The annual inflation rate rose to 7.9% in October 2021, from 6.3% in September, as non-food prices rose by 11.39%, food by 5.25%, and services by 3.96%.

According to INS, The Harmonised Index of Consumer Prices in October 2021 compared to September 2021 is 101.32%. The HICPbased annual inflation rate in October 2021 compared to October 2020 is 6.5%, while the HICPbased average consumer price rate over the last 12 months (November 2020October 2021) as compared  to the previous 12 months (November 2019October 2020) is 3.3%.

The price of gas increases by 46%, followed by electricity by 24% and fuels by 23%. Significant increases are also found in potatoes, with 18%, edible oil with 26%, vegetables and canned vegetables with 8%, sugar with 5%, fish and canned with 6%. In the category of non-food goods, in the last year the largest price increases were recorded for electricity – 24.65%, natural gas – 46.07% and fuels – 23.51%, without recording any reductions. In the case of services, the highest increases were recorded in other services (plus 7.03%), water, sewerage, sanitation (6.51%) and health care services (5.58%).

Since the beginning of the current year, the largest tariff increases have been registered for water, sewerage, sanitation (6.98%), other services (6.74%), and postal services (5.53%). Air transport services fell by 16.2%.

The National Bank of Romania increased its inflation forecast to 5.6% by the end of this year, according to a presentation made in August by the governor of the National Bank of Romania, Mugur Isărescu.

consumer pricesfoodgasincreaseinflationINSnational institute of statisticsoctober
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