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Analysis of the Day: Romania Continues to Have the Highest Inflation Rate in the EU for the Fourth Consecutive Month

Romania has recorded the highest inflation rate in the European Union for the fourth consecutive month, according to Eurostat data cited by Agerpres. In April 2024, the annual inflation rate in Romania was 6.2%, compared to the EU average of 2.6%.

Comparative Data

  • Countries with the Lowest Inflation: Lithuania (0.4%), Denmark (0.5%), Finland (0.6%).

  • Countries with the Highest Inflation: Romania (6.2%), Belgium (4.9%), Croatia (4.7%).

Compared to March 2024, the inflation rate in Romania decreased from 6.7% to 6.2%. Inflation decreased in 15 EU member states, remained stable in four countries, and increased in eight.

Eurozone and Core Inflation

  • Annual Inflation Rate in the Eurozone: 2.4% in April.

  • Core Inflation: 2.8% in April, down from 3.1% in March.

  • Inflation excluding energy, food, cigarettes, and alcohol: 2.7% in April, down from 2.9% in March.

Core inflation is a closely monitored indicator by the European Central Bank (ECB) when formulating monetary policies.

Situation in Romania

According to the National Institute of Statistics (INS):

  • Annual Inflation Rate in April 2024: 5.9%, down from 6.61% in March.

  • Harmonized Index of Consumer Prices (HICP) in April 2024 compared to March 2024: 100.36%.

  • Annual Inflation Rate in April 2024 compared to April 2023 (HICP): 6.3%.

BNR Forecast

The National Bank of Romania (BNR) revised its inflation forecast for the end of 2024 to 4.9%, up from the previous 4.7%, and anticipates an inflation rate of 3.5% at the end of 2025, according to data presented by BNR Governor Mugur Isărescu.

Conclusions

Romania is facing persistent and high inflation, placing it at the top of the EU's inflation rankings. Although the inflation rate slightly decreased in April, it remains a major concern for both national authorities and citizens, in the context of rising service prices and necessary monetary policy adjustments to control this trend.

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