December 2004


Romania through international eyes
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THE Vivid INDEX

November 2004

 

Negative inflation for the month of October, and a huge decrease in the annual inflation rate: we would be aggressively hyping this news if we did not know beforehand of the reasons for the blip down in inflation. Namely that someone, somewhere bought far too many bananas and they could be had for rock-bottom prices the last time we were in Piata Domenii, and that the price of Carpati cigarettes seems yet to find an equilibrium ñ it's up one week and down the next. All we can say is that the annual figure seems to be continuing to move in the right direction. We still marvel at the low price of fresh market food and the fact that Coke has not hiked its prices for over a year now.

 

 

 

  Price      
Item April 1999 Year ago October November
Salami de Sibiu (1 kg, Mega Image) 92,000 335,100 380,000 399,000
Bananas (1 kg, Piata Amzei) 18,000 30,000 35,000 29,000
Unleaded petrol ( 1 litre, Agip) 7,800 23,900 29,000 30,650
Rail ticket (Bucharest-Brasov, Rapid, first class) 70,000 287,000 344,000 344,000
Coca Cola (330 ml, Mega Image) 4,800 18,400 18,400 18,400
1 Libertatea 1,700 4,000 4,000 4,000
1 Big Mac 18,000 57,000 63,000 65,000
1 Egg (Piata Amzei) 1,000 4,600 3,700 3,700
Cigarettes (Carpati, Ion Slatineanu shop) 4,000 16,000 21,000 18,000
Int. telephone call (1 min., daytime, Europe) 8,900 10,760 9,840 9,840

Monthly nominal change in prices, October 2004: - 1.9 per cent
(September was 3.6 per cent)

October 2004 government figure: 1.2 per cent
(September was 0.9 per cent)

Vivid Index, October, year-on-year: 6.7 per cent
(September was 17.2 per cent)

Government figure, October, year-on-year: 10.8 per cent
(September was 11.1 per cent)

2003 inflation: 14.1 per cent
2002 inflation: 17.8 per cent
2004 target: 9.0 per cent