In July, the annual inflation came down at 4.85%, from 7.9% a month earlier, as the effects of a five percentage-point increase in the value added tax have dissipated.
The consumer price index declined 0.35% in August, after a similar decrease in July, the statistics institute INS said in a statement.
Food prices fell 1.4% on the month in August, but prices in the service sector inched up 0.8%. Prices in the non-food sector were unchanged on the month.
Romanians paid by 8.3% less for fresh and canned vegetables in August compared with a month earlier, while the cost of fresh and canned fruit decreased by 10.5%.
On the other hand, tariffs for water and sewage services rose 3.78% on the month, while railway transport prices went up 10.17%, the data showed.
Romania’s harmonized index of consumer prices, or HICP, fell to 7.3% at the end of August, from 7.6% the month before.
The central bank targets an annual inflation of 3% at the end of 2011, plus/minus one percentage point around the band. The bank recently revised downward its forecast on the year-end inflation to 4.6% from 5.1%, citing improved economic conditions and less volatile prices.