Romanian private consumption fell 1.5 percent year-on-year in September, after a 0.9 percent contraction in August, according to data from the National Institute of Statistics (INS) published on Friday. Annual inflation rose to 6.6 percent from 6.2 percent the previous month. Consumption fell again as the base effect from August faded.
Inflation reverses its August drop
Inflation had slowed in August to 6.2 percent from 8.2 percent in July. That decline was attributed to a base effect, because current prices were compared with a year-earlier peak, when VAT and excise duties were raised. The base effect has now worn off, and inflation has moved higher again.
The leu depreciated during the period. Energy and agri-food supply shocks also led forecasters to raise their short-term inflation estimates. Taken together, these pressures pushed prices up again in September.
Real wages move into negative territory
Source: National Institute of Statistics (INS)
