site.btaAnnual Inflation in Romania at Nearly 10% in August

Romania’s annual inflation rate increased to 9.9% in August, up from 7.84% in July, according to data released on Thursday by the National Institute of Statistics. 

The rise occurred amid notable price increases in several sectors: non-food products (+10.48%), services (9.85%), and food products (+8.92%). The highest price increases were observed in fruits, electricity, water supply and medical services.

Experts attribute the inflation spike primarily to the increase in VAT and excise duties implemented on August 1. “What happened in July and August is the result of the first package of fiscal-budgetary measures from Prime Minister Ilie Bolojan’s government,” said economist Adrian Codirlasu in an interview with Euronews Romania.

In August, Mugur Isarescu, the Governor of the National Bank of Romania, predicted that inflation would peak in September. 

He also stated that Romania could avoid a recession if it boosts absorption of EU funds and increases investment financed through European programs. 

Accessing European funds and increasing productive investment is key to economic resilience, Isarescu emphasized. 

While the inflation surge reflects short-term fiscal adjustments, Romania’s medium-term stability will depend on strategic use of EU funding, effective monetary policy and managing the impact of tax reforms on consumers and businesses.