Romania’s inflation slows to lowest level in 12 months

Romania’s inflation slows to lowest level in 12 months

/ bne IntelliNews

By Iulian Ernst in Bucharest June 14, 2023

Headline inflation in Romania (chart) eased to 10.6% y/y in May from 11.2% y/y in April, the statistics office INS announced.

Food prices posted the steepest advance (+18.7% y/y in April) while prices of non-food goods increased by only 5.2% y/y as the energy prices were handled by the state through a complex (and costly) cap and subsidy scheme during the winter period until the market prices eventually fell in April-May.

Food prices remain, however, a challenge, particularly for low-income households where this category of goods accounts for an above-average share. The average share in Romania is already high compared to more developed European countries at 32.3% of the total.

Romania’s central bank, the National Bank of Romania (BNR), kept the refinancing rate at 7% at its May 10 board meeting in line with consensus expectations, balancing positive developments — robust economic growth in Q1 — with rising uncertainty prompted by the government’s fiscal policy and actions related to using Resilience Facility funds.

The economic patriotism strategy announced by the incoming Social Democrat government will likely make the BNR even more cautious.

#romania #bneChart #inflation

Read in IntelliNews Pro

Get IntelliNews Pro

Related Content

COMMENT: What impact will a raft of protests across the Emerging Markets have?

US defers visa waiver after Romania bans far-right candidate from presidential election

Rule of law in EU deteriorates, with decline concentrated in eastern members

COMMENT: What impact will a raft of protests across the Emerging Markets have?

US defers visa waiver after Romania bans far-right candidate from presidential election

Rule of law in EU deteriorates, with decline concentrated in eastern members

Data

Polish retail sales disappoint in February

Polish retail sales fell 0.5% year on year in constant prices in February, defying the consensus, which expected a 3.2% annual increase.

Kosovo’s trade gap up 13.6% y/y in February

Exports dropped by 4.3% y/y to €67.3mn in February, while imports were up 10.9% to €518.6mn.

Polish industrial production fall 2% y/y in February

Poland’s industrial production contracted 2% year on year at constant prices in February (chart), after a revised fall of 0.9% y/y the preceding month, unadjusted data from the statistical office GUS showed.

Polish PPI deflation deepens slightly in February

Poland's producer price index fell 1.3% year on year in February (chart), following a revised fall of 1% y/y in January, the country’s statistics office GUS said.

Moldova keeps base rate at 6.5% despite disappointing economic growth

Previously the BNM hiked the monetary policy rate twice since the beginning of the year to address rising inflation prompted by regulated energy prices

Polish retail sales disappoint in February

Kosovo’s trade gap up 13.6% y/y in February

Polish industrial production fall 2% y/y in February

Polish PPI deflation deepens slightly in February

Moldova keeps base rate at 6.5% despite disappointing economic growth

Dismiss

Chat with usLiveChat