Romania's Inflation Rises
Romania's inflation rose to 6.6% in September, up from 6.2% in August. This increase comes despite a slowing economy, according to ING chief economist Valentin Tătaru. The rise shows that price pressures in the country remain strong. Romania has some of the highest inflation rates in Europe.
Tătaru's analysis points out that the recent drop in inflation was mainly due to statistical base effects. Previous major electricity price hikes and tax changes are fading from annual comparisons. The adjusted CORE2 index, which excludes controlled prices and volatile items, was 6.2% in September. This is down from 8.5% at the end of 2025.
Underlying inflation is still a concern, especially in the services sector. Inflation in services reached 11.1% in September. In comparison, inflation for food was 3.0% and for non-food goods, it was 7.1%. ING believes that the high inflation in services is due to the labor-intensive nature of the sector. This makes it harder for businesses to manage rising domestic costs through imports or moving operations.
Wage pressures are still impacting the economy. Higher energy and food prices are driving wage expectations and contracts. This has extended the effects of inflation beyond the initial increases. Real incomes are falling as costs rise. Tătaru noted that rapid wage growth over the past five years has added to ongoing inflation pressures.
Related coverage: Eurozone Inflation Hits 3.8% Amid Rising Living Costs, Grocery Inflation in Ireland Reaches 4.7% Amid Rising Costs.
Rising inflation in Romania may increase pressure on the National Bank of Romania to change its monetary policy. Higher inflation rates could affect consumer spending and overall economic growth, especially in the services sector. Investors will be watching for upcoming economic data and any signals from the central bank about interest rate changes.
Based on reporting by: business-review.eu