Romanians paid 0.79% less for food and 0.54% less for non-food items in August compared to July, while service prices rose 0.02% on the month.
Compared to August 2014, prices of food items dropped 7.15%, while non-food items were 0.77% more expensive and prices of services grew 2%, the data showed.
Romania’s annual inflation rate turned negative for the first time in more than 25 years back in June, as the country cut the value-added tax rate for food products to 9% from 24%.
The country’s central bank cut down its inflation forecast for the end of 2015 to -0.3%, as it predicts the annual inflation rate will stay in negative territory over the next three quarters.
The central bank expects inflation will return to positive territory by the end of 2016, when the annual rate is seen at 0.7%.