Romania's Parliament has approved the extension of the price-capping mechanism for 17 categories of basic food products until December 31, 2026, shifting responsibility for one of the country's key anti-inflation measures from the executive to the legislature.

The measure was adopted by final vote in the Chamber of Deputies after lawmakers amended the government's latest extension, which had prolonged the scheme only until June 30, 2026.

The mechanism, introduced by the government in July 2023, limits commercial markups along the supply chain for a basket of essential food products. It has been repeatedly extended as authorities sought to mitigate the impact of high inflation on household purchasing power.

"Given the increase in inflation, it is necessary that the products on the list be capped by the end of the year to protect purchasing power, as well as to ensure access to basic food for people with low incomes," the authors of the amendment said, as quoted by Profit.ro.

Romania introduced the price-control mechanism during the inflation surge that followed the energy crisis and has maintained it despite criticism from parts of the business community. Supporters argue that the scheme has helped contain food inflation and protect vulnerable consumers, while critics warn that prolonged intervention may push up the prices of other goods.

The extension also reflects persistent concerns over living costs. Although inflation has eased from its peak, consumer prices remain elevated, and policymakers continue to face pressure to shield lower-income households from rising expenses.

iulian@romania-insider.com

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