Retail inflation eases to 3.28% in September

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Romania's annual inflation rate reached 1.8% in September, the highest level in four years, according to the National Statistics Institute (INS).

The output growth in manufacturing sector, which constitutes 77.63 per cent of the index, however decelerated to 3.1 per cent in August from 5.5 per cent a year ago.

On the other hand, the industry group "Manufacture of furniture" has shown the highest negative growth of -16% followed by -15.1% in "Manufacture of tobacco products" and - 11.4% in "Printing and reproduction of recorded media".

The data revealed the overall food inflation moderated to 1.25 per cent in September from 1.67 per cent in the previous month.

Prices of food products went up last month 0.54 pct, similar to those of non-food products while service tariffs increased 0.32 pct.

Analysts polled by Reuters had expected retail inflation to edge up to 3.60% last month from 3.36% in August.

Economists surveyed by Reuters had forecast 2.4% growth in output compared with a revised 0.9% year-on-year increase in July. The average rate of consumer prices over the last 12 months (October 2016 - September 2017), Y-o-Y, calculated against the CPI [consumer price index - ed.n.] stands at 0.4 pct.

At least 10 industry groups showed growth in manufacturing sector. Inflation not easing further dampens hopes of India Inc for interest rate cuts. It is also below the Reserve Bank of India's medium target of 4 per cent.

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