Romania's inflation is three times higher than the European average (Eurostat)

Romania recorded the highest annual inflation rate among the EU member states in July 2019, with a rise of 4.1 percent in consumer prices, increasing compared to the level recorded in June, namely 3.9 percent, according to the data published on Monday by the Eurostat EU official statistics office. 

It is the 7th consecutive month when Romania registers the highest inflation in the EU. 

While in Romania the consumer prices increased against June, in the EU, the annual inflation rate declined in July 2019 to 1.4 percent from 1.6 percent in June, whereas in the Eurozone, the inflation dropped to 1 percent, from 1.3 percent registered in June. 

Among the EU member states, the highest annual inflation rate was registered in Romania (4.1 percent), Hungary (3.3 percent), Latvia and Slovakia (both with 3 percent). At the opposite end, the member countries with the lowest annual inflation rate were Portugal, a country with a negative inflation rate of 0.7 percent, whereas in Cyprus consumer prices increased by 0.1 percent and in Italy by 0.3 percent. 

Compared to the situation in June 2019, the annual inflation rate increased in 11 member states, remained stable in two member states and declined in 15 member states. 

In the Eurozone, the tariffs for services (0.53 percentage points), followed by the prices for food and cigarettes (0.37 percentage points) had the most significant impact over the annual increase of prices. 

In respect to Romania, the data previously published by the National Institute of Statistics (INS) showed that the annual inflation rate went up to 4.1 percent, in July 2019, from 3.84 percent in June, due to increases of food merchandise by 5.15 percent, services by 4.11 percent and non-food merchandise by 3.44 percent. 

Governor of the National Bank of Romania (BNR) Mugur Isarescu announced in the beginning of this month that the central bank maintained the inflation forecast at 4.2 percent for the end of this year and estimates an inflation of 3.4 percent for the end of next year. In May 2019, the BNR estimated a 3.3 percent inflation for December 2020.