The annual inflation rate in the European Union decreased in February to 2.8%, from a level of 3.1% in January, but Romania is, for the second consecutive month, by far the country with the highest inflation in the community block, as shown by the data published on Monday by Eurostat.
In February, EU member states with the lowest annual inflation rates were Latvia and Denmark (both at 0.6%), followed by Italy (with an inflation rate of 0.8%).
On the other hand, EU member states with the highest inflation rates were Romania (7.1%), Croatia (4.8%), and Estonia (4.4%).
Compared to January 2024, the annual inflation rate decreased in 20 member states, including in Romania from 7.3% to 7.1%, remained stable in five countries, and increased in two member states.
In the euro area, the annual inflation rate decreased from 2.8% in January to 2.6% in February. Additionally, Eurostat data shows that core inflation, which is what remains after eliminating prices for volatile goods such as energy and food, decreased to 3.3% in February, from 3.6% in January.
Another indicator, which, in addition to energy and food prices, also excludes prices for cigarettes and alcohol, decreased to 3.1%, from 3.3% in January. Core inflation is the indicator closely watched by the ECB in shaping its monetary policy decisions.
The annual inflation rate in February 2024 compared to February 2023 calculated based on the Harmonized Index of Consumer Prices (HICP) was 7.1%.
The National Bank of Romania (BNR) revised downward its inflation forecast for the end of this year to 4.7%, from the previous 4.8%, and anticipates it will reach 3.5% by the end of 2025, according to data presented in February by BNR Governor, Mugur Isărescu.