Romania: Inflation hits an over one-year high in May
Latest reading: Inflation rose to 5.5% in May from April’s 4.8%, marking the highest inflation rate since April 2024, and exceeding market expectations. The pick-up was broad-based, with greater price pressures recorded for food, non-food goods, and services.
Meanwhile, the trend was unchanged, with annual average inflation coming in at April’s 5.0%.
Lastly, consumer prices increased 0.46% from the previous month in May, accelerating from April’s 0.07% increase.
Panelist insight: Commenting on future risks clouding the outlook; ING’s Stefan Posea, stated:
“The various measures expected in the fiscal package could bring both inflationary and disinflationary forces ahead, with a net mildly inflationary effect in the short run. Meanwhile, a pick-up in geopolitical risks from the latest events in the Middle East could cancel out some of the downside risks for inflation stemming from the rather low oil prices recorded so far this year.”