Inflation is coming down but food remains very expensive

The annual inflation rate fell to 11.23% in April 2023, from 14.53% in March 2023, according to data from the National Institute of Statistics, published on Friday. However, despite the inflation drop, price of foodstuff increased by 19.84%, non-food products by 5.83%, and services by 10.64%.

“The consumer price index in April 2023 compared to March 2023 is 100.75%. The inflation rate since the beginning of the year (April 2023 compared to December 2022) is 3.1%. The annual inflation rate in April 2023 compared to April 2022 is 11.2%. The average rate of change in consumer prices in the last 12 months (May 2022 – April 2023) compared to the previous 12 months (May 2021 – April 2022) is 15.0%”, says an INS press release.

Sugar, butter, potatoes, margarine, eggs, milk and cow’s milk are the foods that rose in price the most in April, although the inflation rate reported by the INS on Friday was in a consistent decline.

The products described above went up in price by 28% or even 58%, in the case of sugar. What dragged down the average prices were fuel and drug prices, INS data also show.

The harmonized index of consumer prices in April 2023 compared to March 2023 is 100.78%. The annual inflation rate in April 2023 compared to April 2022 calculated on the basis of the harmonized consumer price index (HICP) is 10.4%. The average rate of change in consumer prices in the last 12 months (May 2022 – April 2023) compared to the previous 12 months (May 2021 – April 2022) determined on the basis of the HIPC is 13.0, INS also points out.

The National Bank of Romania has scheduled a press conference for the presentation of the Inflation Report – May 2023, on Friday. According to the central bank, the annual inflation rate will probably continue to decrease on a trajectory almost similar to the one previously forecast, dropping to the level of one digit in the third quarter of this year.