Romania ends 2024 with 5.1% inflation, EC expects deceleration to 2.5% by 2026

Romania registered an annual inflation rate of 5.1% for December 2024 despite significant fluctuations, according to data published Tuesday, January 14, by the National Institute of Statistics (INS). The figure remained unchained from the previous month amid higher political turmoil.

In October 2024 inflation had come down to 4.67%, while in September it sat at 4.6%. The presidential and parliamentary elections, however, brought more financial troubles and higher state spending.

The highest price increases in December, 7.1%, were recorded in the service sector, followed by food products (5.09%), and non-food goods (4.38%).

Among food goods, the most significant price hikes were seen in margarine (17%), fresh fruits and vegetables (13%), beer (8%), and alcoholic beverages (7%). When it comes to non-food products, price increases were noted in detergents (12%), tobacco and cigarettes (10%), chemical products (9%), books, newspapers (7.37%), and hygiene and cosmetic items (6.3%).

In the services sector, the steepest price increases were registered in postal services (17.82%), followed by water, sewage, and sanitation (11%), rent (10.52%), and restaurants and cafes (10%). Airline tickets increased by 8.4% year-on-year, train tickets by 4.66%, road transport by 6.28%, and hotel accommodation by 7%.

The European Commission (EC) noted the decreased inflation but said that “underlying price pressures remain elevated, due to strong domestic demand on the back of increases in wages and pensions and still high increases of services prices.” Nonetheless, the institution said that inflation is forecast to decelerate further and eventually fall within the central bank inflation target range of 2.5% at the end of 2026.

(Photo source: Bizroug | Dreamstime.com)