In the 12 months ended July 31, the annual rate was 0.95%.
Prices of food and non-food products went down 0.9% and 0.1% on the month in August, while service prices increased 0.2%, the data showed.
Romanians paid by 7.8% less for fresh and canned vegetables in August compared with a month earlier, while fresh fruit were 14.3% less costly.
In the non-food sector, the price of fuels inched down 0.5% month-on-month, while tariffs for utilities and for postal and telecom services were both up 0.35%.
Romania’s harmonized index of consumer prices, or HICP, fell to 1.3% at the end of last month, from 1.4% in July.
The central bank targets an inflation rate of 2.5% in 2014, plus/minus one percentage point around the band. Last month, the bank revised down its year-end forecast to 2.2% from 3.3%, saying the inflation rate is expected to decelerate at a faster pace than initially estimated.