Romania’s consumer price inflation eased to 3.7% y/y in August from 4.4% y/y in July and 5.4% y/y in June, the statistics office INS reported. The overall price stabilisation was driven by a significant 3.1% decline in food prices over the past three months [Jun-Aug]. Consumer prices decreased by 0.5% over the period despite the rise in non-food prices and services’ fees.
Food prices increased by only 2.4% y/y in August, driven by abundant vegetables and fruit crops this year, while the non-food goods advanced by 5.0% y/y on adjustments of regulated energy prices, and the services’ fees increased by just 3.2% y/y remaining constrained by the subdued demand [disposable incomes] and stable exchange rate [many fees are defined in euro].
Romania’s central bank sees the end-year headline inflation at 3.1% y/y and also forecasts that the annual inflation would remain within the 1.5%-3.5% target band for the two-year horizon envisaged, its latest Quarterly Inflation Report dated August shows. It is the second consecutive downward adjustment of the forecasts issued on a quarterly basis by the central bank.
Related Articles
Eurozone manufacturing growth hits four-year high in April but Middle East war drives record price surge
Eurozone manufacturing activity expanded at the fastest pace in nearly four years in April as factories rushed to build safety stocks ahead of expected price rises and supply shortages linked to the ... more
Non-performing loans hit historic low in CESEE, but early warning signs emerge, says EBRD
Non-performing loans (NPLs) in central, eastern and south-eastern Europe (CESEE) fell to their lowest levels since the global financial crisis in 2024, but early indicators suggest rising risks ... more
EC clears €200mn capital increase at Romanian state-owned CEC Bank
The European Commission has approved Romania’s planned €200mn capital increase for state-owned CEC Bank, allowing the country to proceed with strengthening the lender’s financial position, ... more