Romania’s annual inflation rate accelerated sharply to 9.85% in August, driven by soaring electricity tariffs and higher VAT, the National Institute of Statistics (INS) said in the report released on Thursday, September 11. The figure marks a significant jump from July’s 7.8% rate, with non-food goods recording the steepest increase at 10.48%.
Electricity prices surged by 65.73% year-on-year after the government ended the price cap scheme as of July 1 and the standard VAT rate was raised to 21% on August 1.
Food prices rose 8.92% year-on-year, led by fresh fruit, which climbed 41.7%, followed by fruit preserves (27%) and coffee and cocoa (19%), Economedia.ro reported. Bread, edible oil, milk, and eggs also saw notable increases. Alcoholic beverages became costlier as well, with beer up 7.6% and wine 7.1%.
Meanwhile, services posted an annual increase of 9.85%, with cosmetic and hygiene services up 19.3%, train travel up 18.6%, and auto repair costs rising nearly 14%. Rents increased by 10.5%, restaurant meals by 12.3%, and healthcare services by 13.3%.
Beyond electricity, other non-food goods also recorded higher prices: thermal energy (+13.6%), detergents (+8.4%), tobacco (+8.7%), and medicines (+5.2%).
According to the INS report, there were a few price drops over the year, with sugar (-2.6%), potatoes (-9.4%), air transport (-7.3%), and telecom services (-2%) becoming cheaper.
The inflation surge comes after the National Bank of Romania (BNR) already revised its forecast sharply upward. Governor Mugur Isărescu warned in August that inflation could exceed 9% this year, peaking at around 9.6% in September before gradually easing.
“In September, we will likely see the peak of inflation… after that, there will be a gradual absorption of these shocks,” Isărescu said.
With August already close to 9.9%, inflation has surpassed the central bank’s earlier projections of 8.8% for the year-end.
irina.marica@romania-insider.com
(Photo source: Ungureanu Vadim/Dreamstime.com)
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