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May 22, 2024
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Economy Romanian News

Inflation Rising in Romania: Prices up to 3,7% in April

According to the National Institute of Statistics, the inflation rate in April 2022 was 13.8%. Consumer prices grew by 3.7% in April 2022 compared to March 2022. The rate of inflation at the start of the year (April 2022 vs December 2021) is 7.9%.

Consumer prices increased 7.4% in the recent 12 months (May 2021-April 2022) compared to the prior 12 months (May 2020-April 2021). The harmonised index of consumer prices in April 2022 is 102.37% higher than in March 2022. Based on the Harmonized Index of Consumer Prices (HICP), the annual inflation rate in April 2022 compared to April 2021 is 11.7%. Consumer prices increased by 6.4% in the last 12 months (May 2021-April 2022) when compared to the previous 12 months (May 2020-April 2021) as measured by the HICP.

Photo source: INS (Chart: Annual change in consumer prices)

Consumer prices in April 2022, compared to March 2022, increased by 3.7%. At the beginning of the year (April 2022 compared to December 2021), the inflation rate was 7.9%. The annual inflation rate in April 2022 compared to April 2021 is 13.8%. The average rate of consumer prices in the last 12 months (May 2021 – April 2022) compared to the previous 12 months (May 2020 – April 2021) is 7.4%

Romanian National Institute of Statistics press release

According to the Quarterly Inflation Report, the National Bank of Romania anticipates inflation of 11.2 % at the end of the second quarter of 2022, 10.2% at the end of the third quarter of this year, and 9.6% at the end of the fourth quarter of 2022.

The inflation rate’s expected trajectory is uncertain because the evolution of energy product prices influences it. The report assumes an acceleration of inflation in April 2022, at the end of applying the measures for capping and compensating the costs of electricity and natural gas for the general public. The annual inflation rate will gradually decelerate until the first quarter of 2023, abruptly in April 2023, amid a favourable base effect.

Romania’s National Bank has currently increased the monetary policy rate to 3.75pc following double-digit Inflation. This measure tries to combat Romania’s soaring inflation, which has already reached double digits. Experts predict that things will get worse in the coming months. The situation in Romania is becoming more and more difficult, and the solutions of financial institutions are insufficient in fading an acceleration of the crisis.

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