The central bank also estimates inflation in July stood at 5%, taking into account the electricity, natural gas and fuel price hikes announced that month.
The latest data published by Romania’s National Statistics Institute show an annual inflation rate of 3.94% in June, compared with 3.75% in May.
The main reasons for the increase in inflation this year are the rising prices of energy products, i.e. of electricity, natural gas and fuels. The sector’s impact on the total inflation is 2.7% at the end of 2021, the central bank says, 1.6% of which power prices, and 0.3% in 2022.
The central bank expects the annual consumer price inflation rate to remain above the upper bound of the variation band of the target in (+/- 1 percent from 2.5%) by the second quarter of 2022.
(English version by Loredana Fratila-Cristescu)