RRI Live!

Listen to Radio Romania International Live

Updated inflation forecast

The inflation rate will continue to go down in Romania, although at a slower pace than anticipated

(Credits: pixabay.com)
(Credits: pixabay.com)

, 16.05.2024, 14:00

The National Bank of Romania has increased its estimate on the inflation rate in Romania for the end of 2024, from 4.7% to 4.9%. At the same time, the Bank maintained the inflation forecast for the end of next year at 3.5%. Central Bank Governor Mugur Isărescu on Wednesday presented an updated inflation report, explaining why the level of the inflation rate will exceed the original estimates at the end of the year. Inflation will continue its downward trajectory, although at a slower pace than expected, Isărescu said. The Central Bank is trying to lower inflation, without however triggering a recession, he added. The Governor of the Central Bank claims that returning the inflation rate to the reference target range will depend a lot on the timing the Bank decides to reduce the reference interest rate, but also on its level. At the start of the week, the Central Bank Board of Directors decided to maintain the monetary policy interest rate, also known as the “reference interest rate”, at the level of 7% per year.

 

 

The Governor of the National Bank also said that a favorable evolution of the inflation rate this month could prompt the Board of Directors to decide to reduce the reference interest rate, which influences all interest rates charged by commercial banks. Such a decision, however, depends on the entire evolution of the local economy, as well as on international developments. However, Mugur Isărescu does not exclude the possibility that the decision will be postponed to the second half of the year or even be ruled out entirely for 2024. On the other hand, the Central Bank Governor said that revenues increase much more than productivity overall, which will have a significant impact on inflation, adding that he expects to see productivity increase as well. Mugur Isărescu referred to the latest statistical data, which confirms that the average net salary exceeded the equivalent of 1,000 EUR in March. The main uncertainties and risks regarding the evolution of the inflation rate continue to be related to fiscal and budget policies, being linked to the high budget deficit, the salary dynamics and the additional fiscal-budgetary measures that could be implemented in order to continue the budget consolidation. Other elements, such as the potential effects of the wars in Ukraine and the Middle East, also impact the evolution of the inflation rate.

 

 

The annual inflation rate continued to decrease and reached 5.9% in April compared to 6.61% in March, the National Institute of Statistics announced this week. Prices for foodstuffs and services reported slight increases, below 1%. In contrast, prices for non-food products went down. According to the European Commission’s spring forecast, Romania’s economic growth remains one of the most robust in the EU, 3.3% per year. On the downside, Romania has the highest inflation rate at community level, almost 6%, nearly twice the European average. (VP)

European Commission (photo: © European Union - Source: EC - Audiovisual Service / Photographer: Christophe Licoppe)
Today in the News Thursday, 21 November 2024

Political agreement on the new European Commission

    The leaders of the three major political groups in the European Parliament have given the green light to the members of the next...

Political agreement on the new European Commission
Photo: aep.ro
Today in the News Thursday, 21 November 2024

13 for Romania

    In Romania, presidential elections usually spark the greatest interest and emotions. Even more so this year, when the two rounds of the...

13 for Romania
Gas consumption in the EU (Credits: magnascan-pixabay-com)
Today in the News Wednesday, 20 November 2024

Romania’s natural gas, available for trading

On Tuesday, the Romanian company Romgaz launched its first issue of bonds on the Bucharest Stock Exchange, worth 500 million EUR. Romgaz is the...

Romania’s natural gas, available for trading
Photo: roaep.ro
Today in the News Tuesday, 19 November 2024

Romania ahead of the presidential election

Next month, President Klaus Iohannis will end his second and last five-year term in office according to the Romanian Constitution. The so-called...

Romania ahead of the presidential election
Today in the News Tuesday, 19 November 2024

Romania’s Prime Minister on a visit to Brussels

NATO welcomes Romania’s continuous efforts and its significant contribution to strengthening the Alliance and Euro-Atlantic security, NATO...

Romania’s Prime Minister on a visit to Brussels
Today in the News Monday, 18 November 2024

Downward forecast from the European Commission

Romania’s economic growth estimate has been recalculated by the European Commission (EC), at a value well below the initially established...

Downward forecast from the European Commission
Today in the News Monday, 18 November 2024

35 years since the fall of the Berlin Wall

The fall of the Berlin Wall, 35 years ago, represented for Romanians an encouragement in their fight for freedom, and the removal of the Iron Curtain...

35 years since the fall of the Berlin Wall
Today in the News Friday, 15 November 2024

European minimum wage in Romania

The law on the introduction of the European minimum wage in Romania was promulgated by President Klaus Iohannis. Prime Minister Marcel Ciolacu has...

European minimum wage in Romania

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company