In the latest release from Eurostat, Romania’s inflation rate continues to lead the European Union, hitting 5.8% in July—an increase from 5.3% in June. This trend places Romania at the forefront of the EU’s inflation figures, well above the Union’s average, which saw a slight rise from 2.6% to 2.8% over the same period.
The broader EU landscape shows varying inflation rates, with Finland (0.5%), Latvia (0.8%), and Denmark (1%) reporting the lowest. In contrast, Belgium (5.4%) and Hungary (4.1%) also reported significant rates, although they trail Romania’s ongoing surge.
While inflation in the Eurozone itself showed a modest increase, from 2.5% to 2.6%, the core inflation—which excludes volatile items like energy and food—remained consistent at 2.8%. Another critical measure, which further excludes alcohol and cigarette prices, stayed at 2.9%. These indicators are vital for the European Central Bank’s monetary policy decisions.
Zooming in on Romania, the National Institute of Statistics (INS) detailed that July’s inflation was driven by a 1.71% increase in food prices, a 6.92% rise in non-food items, and an 8.52% hike in services. The harmonised index of consumer prices increased to 100.60% in July compared to June, reflecting a month-on-month inflationary push.
Yearly comparisons are equally stark, with a year-to-date inflation rate of 3.2% from December 2023 to July 2024. The rolling average rate of consumer price changes from August 2023 to July 2024 climbed to 6.8% compared to the preceding 12 months.
In regions like Cluj, a significant hub in Romania, these inflation rates are particularly impactful. Rising costs are palpably affecting everyday life, with noticeable increases in sectors such as real estate and essential consumer goods. This regional perspective echoes the national economic challenges, as residents and businesses alike feel the weight of escalating prices amidst broader economic pressures.
