Romanian finance minister touts “fastest slowdown in inflation in recent years” after rate falls to 6.2%

Nazare, who became minister in July 2025, said that he worked toward a fiscal policy that would no longer amplify inflation and imbalances through ever-larger deficits, but would become an anchor of stability again.

"The annual inflation rate fell to 6.2% in August, from 8.2% in July and above 10% in June. This is the fastest deceleration in recent years and, unlike previous episodes, it does not come from an administrative price cap, but from a real correction of the economy's balances,” Nazare said on Facebook.

According to the minister, part of the decline is explained statistically, by last summer's price increases dropping out of the calculation. Moreover, the decline is related to fundamentals: tempered domestic demand, a declining deficit and lower financing costs.

At the same time, Nazare said that due to the international situation that led to higher fuel prices, the population is not truly feeling the drop in inflation.

"Excluding fuels, consumer prices fell by 0.08% in August compared with the previous month. Food prices fell by 0.7% in a single month, while vegetables and fruit are cheaper today than they were a year ago. The remaining pressure comes almost entirely from the external oil market: gasoline and diesel are the only categories with double-digit increases. This is a factor we do not control, but whose effects can be absorbed," the interim minister also said.

The official pointed to the budget deficit, which is 37% lower over the first 6 months of 2026 than in the same period last year, while public investment increased by RON 15 billion.

However, debts accrued by Romania in recent years weigh heavily on its budget.

"Almost half of this year's deficit, approximately 3% of GDP, is exclusively interest payments on debt accumulated in previous years. This is money that goes neither to hospitals, nor schools, nor highways. Every percentage point reduction in Romania's financing costs means resources recovered for such projects, which can be seen concretely," Nazare said.

The finance minister pointed out that average inflation over the past 12 months is almost 9.5%, and this can be seen in bills and on store shelves.

“Disinflation and deficit correction are two sides of the same process. Continuing it means discipline on the spending side, meeting the targets undertaken and shifting economic growth from debt-fueled consumption toward investment," Nazare also said.