Romanian PM reportedly opposes further extension of food price capping mechanism

Romania’s prime minister Ilie Bolojan reportedly opposes the idea of further prolonging the price-capping mechanism introduced in August 2023 and repeatedly extended so far, according to Ziarul Financiar. Ambiguous statements over the weekend indicated an incipient conflict among the ruling coalition’s partners on this topic, with the Social Democrats (PSD) vocally arguing for keeping in place the measure.

Under the mechanism, the trade margins or distribution and retail companies are capped, while the shelf price in itself is not capped. The mechanism was last prolonged for three months in June and is due to expire at the end of September.

The Social Democrats warned of non-prolongation of the regime, further fuelling the inflation, which is already close to the double-digit area after the electricity price liberalisation in July and the higher VAT and excise duties in August.

Inflation, which rose to 9.9% in August 2025, could reach 14% in December, and Romanians cannot bear new price increases, according to PSD.

(Photo source: Piman Khrutmuang/Dreamstime.com)