Romanian Inflation Hits Four-Year High


Consumer prices in Romania were up 3.23 per cent in November on the same month in 2016, the country’s National Institute of Statistics (INS) announced on December 12. The figure is the highest for more than four years, with prices up 0.66 per cent on October. The increase has been caused by the sharp growth in price of a number of everyday goods (particularly eggs and dairy products), as well as energy. High interest rates, and the unfavourable leu-euro exchange rate have also placed upward pressure on prices.

The governor of the Romanian National Bank (BNR) Mugur Isarescu said that he estimated inflation for the rest of 2017 to be around 3.1 per cent, and warned that it could rise over 4 per cent in the first quarter of 2018.

‘The rate of inflation will continue to rise through January, February and March next year, after which I expect it to flatten out,” Mr Isarescu said. In a thinly veiled dig at the government, he added: “Unfortunately, it is not easy to say what’s going to happen given that the fiscal environment is so unpredictable. Taxes go up, taxes go down. Is VAT going up? Is VAT going down?” The BNR’s original prediction of an annual rate of inflation for 2017 of 1.9 per cent has been revised a number of times.

The INS also announced on December 12 that the turnover of firms in manufacturing and industry had risen by more than 17 per cent in October compared to the same month in 2016. This follows a much smaller increase of just five per cent in September. The increase is primarily affected by climbing energy prices: companies in the oil extraction field saw the biggest jumps in turnover, well over 30 per cent.


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Fitch And the World Bank: Economic Growth To Remain Solid Within CEE In 2016

Romanian President Appoints Country’s First Female PM

viorica dancila prime minister of romania

Chickens Blamed for Romanian Budget Deficit

Two white chickens or hens inside a chicken coop or hen house seen through chicken wire.

Business Standards Are High in SEE But Vary Widely

Aerial view of The Cathedral of the Assumption in Varna

Ukraine Holds Open House at Davos

WEF: Emerging Europe Ready for the Future

robotic machine tool in industrial manufacture plant,Smart factory industry 4.0 concept.

Investing in Ukrainian Food and Agriculture

The Polish Government’s Mid-Term Report: Must Do Better

Front of finance ministry in Warsaw Poland with a fountain framing the entrance. Could be used for images about Euro currency problems

HSBC Opens Warsaw China Desk

CEE Tech Growth Continues: Poland and the Czech Republic Lead the Way


Chinese Electric Car Maker Seeks Emerging Europe Base

zhi dou d2

Bulgaria and Romania Get EBRD SME Boost

Startup Diversity Teamwork Brainstorming Meeting Concept

Foreigners choose Minsk and Gomel as Belarus’ most attractive FDI destinations

Slovenia: Emerging Europe’s Hidden Giant

ljubljana slovenia

Euroscepticism in Serbia: An Image Problem?

Tech Giant Expands Romanian Operations

European Commission Withholds 600 Million Euros from Ukraine

kyiv, kiev, ukraine

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