Burst of inflation in Romania

Romania is among the EU countries with the highest inflation rate in the month of October.

Roxana Vasile, 18.11.2021, 01:50

The gross domestic product went up by 3.9% in the European Union in the third quarter of the year, as compared with the same period of 2020. All member states reported increases in their GDP, with high rates being recorded by Romania (8%), Hungary (6,1%) and Lithuania (6%), according to preliminary data made public this week by the European Statistics Office. Experts, however, advice for caution, and remind that the pandemic situation triggered a severe economic contraction a year ago. Romanians do not feel any economic improvement. According to the Eurostat, Romania is among the EU countries with the highest inflation rate in October. At EU level, annual inflation went up to 4.4% in October from 3.6% in September. Romania, with 6.5%, is over the European average, but is behind Lithuania (8.2%), Estonia (6.8%) and Hungary (6.6%).

Romanians have been strongly affected by the higher prices. The electricity and natural gas bills, which are higher than ever, have generated increases in the price of food and non-food products and services. The National Statistics Institute announced last week that the annual inflation rate in the country went up to 7.9% in October this year from 6.3% in September, while the price of non-food products increased by over 11%, of food products by 5.25% and of services by almost 4%. Moreover, in the latest report on inflation, made public by the National Bank of Romania (BNR), the annual inflation rate is put at 7.5% in December this year and at 5.9% at the end of 2022. BNR also said that, as compared to the August report, the figures in new forecast are by 1.9% bigger for the year-end and by 2.5% bigger for end-2022. In her turn, former IMF chief, currently head of the European Central Bank, Christine Lagarde, has warned over a high inflation rate and a slow down in economic growth in Europe for longer than expected. (EE)