Romania's central bank sees industrial prices and expectations pushing up inflation in Q2

The upward trend of the annual dynamics of industrial producer prices for consumer goods that had started in the autumn of last year and continued into January-February 2025, but especially the sharp increase in firms' and consumers' short-term inflation expectations for Q1 as a whole, were united by the experts of the National Bank of Romania (BNR) during the April 7 monetary board meeting.

Romania's industrial price inflation surged to 4.0% y/y in February, reversing from a decline of 0.3% in January. Final goods displayed varied trends, with prices for non-durable consumer goods maintaining a high annual growth rate of 5.4%, consistent with January's 5.3%. Durable consumer goods, however, continued their slower advance, recording a 2.7% y/y increase.