The annual inflation rate fell to 2.7% in August this year, from 2.8% in July, given that food prices rose by 5.45%, services by 2.97%, and non-food goods by 0.75%, according to data published on Thursday by the National Institute of Statistics (INS).

“Consumer prices in August 2020, compared to August 2019, increased by 2.7%. The annual rate calculated on the basis of the harmonized index of consumer prices (HICP) is of 2.5%. The average rate of consumer prices in the last 12 months (September 2019 – August 2020) compared to the previous 12 months (September 2018 – August 2019), calculated on the basis of the CPI, is of 3.1%. Determined on the basis of the HICP, the average rate is of 2.9%,” shows the INS release.

The annual CPI inflation rate for the end of this year and next year is forecast at 2.7% and 2.5%, respectively, according to the Inflation Report published by the National Bank of Romania, according to Agerpres.

“The estimated contribution of the change in indirect taxes is of 0.2 percentage points at the end of this year and 0.4 percentage points at the end of next year. The average annual rate of CPI inflation will continue its downward path from the first half of this year, but in a slower pace, being anticipated to reach 2.5% at the horizon of the projection, second quarter of 2022,” it is mentioned in the report.

According to the NBR, compared to the previous report, the revisions for the annual CPI inflation rate are minor. The value anticipated for the end of the current year is lower by 0.1 percentage points, given the downward revaluation of the contribution of the exogenous components of the consumer basket, which counterbalances the projection on this horizon of slightly higher values in the case of core inflation. For the end of next year, the forecast is similar to the previous one.