Romania’s inflation accelerates in Nov. ’24

Romania’s inflation rate rose to 5.1 per cent in November, up from 4.7 per cent in October, slightly exceeding economists’ expectations. Consumer prices increased by 0.4 per cent month-on-month, according to the country’s statistics office.

The central bank had anticipated this acceleration and revised its 2024 inflation forecast to 4.9 per cent.

However, the ongoing political crisis, triggered by the cancellation of the first-round presidential election results, is clouding the economic outlook and limiting the central bank’s ability to ease monetary policy.

Romania is grappling with the EU’s largest budget deficit and the potential onset of a recession. Amid political turmoil, pro-European parties are seeking to form a new government and implement plans to curb public spending and attract EU funds.

Attribution: Bloomberg

Subediting: M. S. Salama