BUCHAREST, Sept. 11 (Xinhua) -- Romania's annual inflation rate jumped to 9.9 percent in August, up from 7.84 percent in July, driven by an increase in value-added tax (VAT) and excise duties, official data showed Thursday.

According to the National Institute of Statistics, prices for non-food goods rose 10.48 percent year-on-year, while those for services increased 9.85 percent, and food prices rose 8.92 percent.

The National Bank of Romania revised its 2025 inflation forecast sharply higher to 8.8-9 percent, from a previous 4.6 percent, but expects price growth to slow to 3 percent by the end of 2026.

The government raised the standard VAT rate on Aug. 1 to 21 percent from 19 percent, while unifying the reduced rate at 11 percent. Excise duties were also increased on alcohol, tobacco, fuel, wine, cider, mead, and cigarettes. ■