Inflation, on the rise
e annual inflation rate in Romania exceeded 8.5% in February. It is a high inflation rate, but it is below the economists forecast and smaller than that of other countries in the region.
Daniela Budu, 15.03.2022, 13:50
One of the economic dangers facing Romania and many other countries in the world, at present and in the upcoming months, given the international context, is inflation. Experts say its effects will be felt at the level of revenues and economy, given the fact that the latter is based mostly on consumption. According to the National Institute of Statistics (INS), natural gas, edible oil, potatoes and fuels have registered the highest price rise in the past year in Romania, while the only decrease reported was in electricity. Given that in the last month the price of all categories of food and non-food stuff and services went up, the inflation rate exceeded, in February, 8.5%. The Central Bank’s spokesman, Dan Suciu, said that this is a general trend, and that the increase is quite small as against the previous month and a lot smaller than in other countries in the region.
According to Dan Suciu, Romania, which last year reported the highest inflation rate in the EU, is now somewhere in the middle among member countries. The Baltic states, in spite of being part of the euro zone, have an inflation rate of 11% to 14%, while Poland, Bulgaria and the Czech Republic have over 9%. In an article posted on the blog opiniibnr.ro, Dan Suciu says the Central Bank and the Finance Ministry hold both together and separately, a varied set of tools they can use to ease negative effects and overcome sensitive situations. Thus, the state was able to further take out loans, in spite of the war in Ukraine coinciding with an energy crisis still underway and increased inflationist pressure.
Moreover, according to Suciu, the domestic currency was relatively stable on the inter-banking market, while other currencies in the region have depreciated significantly. He explained that the situation a few days before, when Romanians bought a lot of foreign currency, following market speculation, did not impact significantly the exchange rate’s evolution on the inter-banking market, and that the problem was solved once foreign currency was brought from abroad and distributed to those who wanted it. It is clear that difficult times lie ahead, as prices will continue to grow and salary rises will not keep up with inflation. The population already feels the effects of prices going up, in particular pensioners and employees with small revenues. Experts say the inflation index is not even higher also due to the fact that Romania has capped electricity and natural gas prices. In their opinion, the current inflation level requires further measures, which should be carefully dosed, and forecast a slowly advancing inflation rate for March. (EE)
