Inflation, on the decrease
Inflation falls by 2%, but price pressures remain, particularly in services and energy.
Ştefan Stoica, 14.09.2026, 14:00
Inflation in Romania fell significantly in August, from 8.16% to 6.17%. This marks another substantial reduction, following a fall of more than two percentage points recorded the previous month. Specialists say the decline was mainly due to last August’s VAT increase dropping out of the comparison base. They also warn, however, that lower inflation does not mean that price pressures have disappeared. In fact, prices in August were, on average, 0.22% higher than in July, while since the beginning of the year they have risen by 4.6%.
There are significant differences between categories. Food prices are only 2.6% higher than they were in August last year, and they actually fell, on average, compared with July. Seasonal factors played a role. Fresh fruit is more than 18% cheaper than a year ago, potatoes are around 15% cheaper, while vegetable prices have also fallen.
On the other hand, coffee prices have risen by 15%, eggs by almost 11%, and beef by 8.5%. For services, annual price growth remains above 11%, well above the overall inflation rate. Rents have seen the biggest increase, at almost 40%, while water, sewerage and waste collection charges are more than 14% higher. Significant price rises have also been recorded for television subscriptions, car repairs and road transport. Services are the slowest component to respond to any disinflationary process, because they include wages, commercial rents and annual contracts. The fact that service prices are still rising by double digits, even in a month when the overall inflation rate fell to 6.2%, is a sign that underlying price pressures have not disappeared, financial analysts warn.
Fuel prices have recorded the biggest increases compared with last year. Diesel is almost 35% more expensive than it was in August last year, while petrol prices are up by more than 25%. In just one month, fuel prices rose by more than 6%. By contrast, electricity is less than 2% more expensive than a year ago, following much more substantial increases recorded previously, while gas prices are slightly lower. Experts say unpredictable developments in energy markets could reverse the downward trend in inflation.
Interim Prime Minister Ilie Bolojan says the results of efforts made by society as a whole are beginning to become visible, through lower inflation and a reduced budget deficit, as well as increased public investment. According to Bolojan, the decline in inflation would have been even more pronounced if fuel prices had not been under pressure from the external crisis, which is being felt around the world. As that pressure eases, the impact on prices at the pump should also diminish, the prime minister believes. The essential task of the next government is to build on the efforts made by society so far and continue along this path, so that Romania’s huge potential can be fully realised, the prime minister said.
(EE)
