Romania: Inflation hits three-month low in January
Latest reading: Inflation inched down to 5.0% in January from December’s 5.1%, marking the weakest inflation rate since October 2024 but remaining above the Central Bank’s 1.5–3.5% target range. Looking at the details of the release, prices for food and services increased at a weaker pace, outweighing stronger price pressures for non-food goods.
Accordingly, the trend pointed down mildly, with annual average inflation declining to 5.4% in January (December: 5.6%).
Finally, consumer prices rose 0.92% in January over the previous month, picking up from the 0.29% increase logged in December. January’s uptick was the highest reading in one year.
Panelist insight: Commenting on the outlook, Vlad Ionita, analyst at Erste Bank, stated:
“The 2025 inflation outlook remains somewhat uncertain as fiscal measures taken by the government to address the large fiscal deficit are still on the table and could also influence the CPI. […] The future of energy price caps, currently scheduled to expire in April, also remains uncertain. While discussions about extending them are ongoing, no official decision has been made.”