The annual inflation rate: -0.5pc at the end of 2016

The annual inflation rate was of -0.5% at the end of December 2016, below the National Bank of Romania (BNR) forecast of -0.4%, the National Statistics Institute (INS) informs on Friday.

“Consumer prices, measured by the consumer price index (CPI), were lower by 0.5% in December 2016 as compared to December 2015. Determined by the Harmonised Index of Consumer Prices (HICP), the annual consumer price rate was of -0.1%. In December 2016, the share of goods and services registering price decreases, as compared to December 2015, was of 36.3%, the ones registering price increases ranging between 0 to 2.5% have a share of 55.0%. The goods and services whose prices have increased by more than 2.5% had a share of 8.7%,” the release reads.

The average rate of consumer prices in the past 12 months (January 2016-December 2016) against the previous 12 months (January 2015-december 2015) measured by CPI was of -1.5%. Measured by HICP the average rate was of -1.1%.

BNR estimated an inflation rate of -0.4% for the end of last year. The BNR target is of 2.5%, plus/minus one percentage point. For the end of Q1 2017 the national bank anticipates an inflation rate of 0.8%, plus/minus one percentage point.