The main cause of the price hikes is the depreciation of the leu, as products whose prices are computed in euro but are sold in lei have a higher price when the leu depreciates.
Prices of airplane tickets and phone calls increased especially in the first two months of this year. Considering that the exchange rate was more stable in the third month, and the financing agreement was signed with international financial institutions at the end of March, the leu has started to appreciate. INS data confirms this, as prices of airplane tickets and phone calls fell slightly in March.
Citrus fruits, cigarettes, sugar, and books are the products which registered the highest price rises in March, compared to the previous month. At the same time, the price of eggs, oil, and fresh fruit slid 5.11 percent, 3.18 percent, and 0.87 percent, respectively.
On the whole, inflation gained 0.5 percent in March compared to February. The annual growth rate of prices was 6.71 percent in the March 2008-March 2009 period.
