The country’s statistics institute INS said the annual rate decelerated to 1.88% in September, from 3.67% in the twelve months through August. The central bank targets an annual inflation of 2.5% at the end of 2013, plus/minus one percentage point around the band.
Consumer prices inched down 0.6% on the month, reflecting a 1.8% drop in food prices, particularly for bread products. Non-food prices were stable on the month in September, while service tariffs edged up 0.4%, the data showed.
Romanians paid by 11.54% less for bread in September compared with the previous month. The government recently cut the sales tax rate on bread and bakery products to 9% from 24% previously.
Potatoes were by 6.36% cheaper on the month, while fresh fruit prices declined 3.95%.
On the other hand, rail transport tariffs rose 6.13% on the month in September, while water and sewage services were 0.76% more expensive.
Romania’s harmonized index of consumer prices, or HICP, was 4.1% at the end of September, slightly down from 4.4% in the previous month.