Romania: Inflation rises in April
Consumer prices rose 0.45% over the previous month in April, above the 0.38% increase logged in March. Looking at the details of the release, April’s upturn was largely owing to a quicker rise in prices for food, non-food goods, as well as services.
Inflation edged up to 3.2% in April, from March’s 3.1%. Meanwhile, annual average inflation was unchanged at March’s 2.6% in April. Lastly, core inflation dropped to 2.8% from March’s 2.9%.
Commenting on the outlook for inflation, analysts at EIU, noted:
“We expect annual inflation to average 3.6% in 2021, largely owing to price rises related to the further liberalisation of the household electricity market. […] The strong recovery in global oil prices is also playing a role. Inflation will remain elevated in the second half of 2021, especially as private consumption begins to rebound more strongly with the opening up of the economy amid the vaccine rollout. Even as the inflationary pressures stemming from the lifting of restrictions ease, a stronger labour market from 2022 will maintain upward pressure on consumer prices.”