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Romania’s consumer price inflation climbs to 15.32% in August

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Romania‘s consumer prices rose by 15.32% on the year in August, compared to an increase of 14.96% year-on-year in July, the national statistical office (INS), said on Monday, according to See News. 

Food prices rose by an annual 18.22%, while non-food prices saw a 15.98% increase, INS said in a statement.

Prices of services grew by 8.26%. On a monthly comparison basis, Romania’s consumer price index (CPI) rose 0.56% in August, as food prices were 1.82% higher, non-food prices shrank by 0.19% and prices of services were 0.37% higher.

The average consumer price inflation was 11% over the last 12 months, compared to the previous 12 months.

On August 9, Romania’s central bank BNR increased its inflation forecast for 2022 to 13.9% from 12.5% predicted in May, way above the upper end of its target band of 1.5-3.5%, due to supply side constraints amplified by the war in Ukraine.

On August 5, the BNR said it decided to increase its monetary policy rate to 5.50% from 4.75%, aiming to anchor inflation expectations over the medium term, as well as to foster saving through higher bank rates.