Inflation will form a "curl" in September, reaching a peak of 9.6-9.7pct and will likely be above 9pct by the end of the year, according to data presented on Tuesday by Governor of the National Bank of Romania (BNR) Mugur Isarescu within a press conference."This is a calculation I made earlier. It needs to be improved based on what we saw today from the consumer price index. The impact of large supply shocks on inflation this year and on the adjusted CORE 2 inflation has been calculated. Overall, it amounts to 4 percentage points. This is the main reason why we could not even consider an interest rate cut. That is why I used the word large, a large increase in inflation this year. Two percentage points come from the liberalization of the energy market on July 1. Looking at the index released today, it's slightly higher, 2.2 percentage points. The second major VAT shock, according to our calculations, impacts headline inflation, CPI by 1.6 percentage points, with an excise duties increase adding 0.4 percentage points. Four percentage points were calculated last week, 4.2-4.3 percentage points based on today's data. The impact on adjusted CORE 2 inflation is also significant. There are three major shocks that will be absorbed in the coming period if we avoid secondary effects, deterioration of inflation expectations is not easy after such price increases. This is the forecast. We have a pretty noticeable 'curl' so to speak, and it's actually a bit larger. So, in September, when the peak likely occurs, instead of 9pct, inflation will probably be around 9.6-9.7pct, after which there will be a gradual absorption of these shocks. Indeed, in our forecast, by the end of next year, inflation will not only fall within the targeted range, but will be even lower than the inflation projected in the previous round, in the last inflation report," Mugur Isarescu explained at the press conference presenting the quarterly Inflation Report.The BNR revised upward its inflation forecast for the end of 2025 to 8.8pct, "probably over 9pct," from the previous 4.6pct and anticipates it will reach 3pct by the end of 2026, compared to 3.4pct in the previous forecast.According to the data presented at the conference, the liberalization of the energy market on July 1, 2025, will have a 2 percentage point impact on the annual CPI inflation rate. The increase in VAT rates will have a 1.6 percentage point impact, while the rise in excise duties will contribute 0.4 percentage points.
President Nicușor Dan, currently on holiday with his family in the Romanian mountains, appealed to Romanians to spend their holidays in the country. In a video posted on social media, he said that the most beautiful places he visited are those in Romania. “The most beautiful places I have visited with my family are those here, […]
Romania saw an increase in newly established companies that far exceeded the EU average in the second quarter of 2025, according to data published on Monday, August 18, by Eurostat. According to these data, from the first quarter to the second quarter of 2025, the largest increases in the establishment of new companies...
A new interactive map is bringing Romania’s street art scene into focus, documenting murals and urban art interventions across major cities and smaller towns. The Romanian Street Art Map highlights works from Bucharest, Cluj-Napoca, Iași, Timișoara, Sibiu, Constanța, Brașov, Craiova, Ploiești, Bacău, Reșița, and even seaside destinations such as Vama Veche, offering both locals and […]
Bucharest will see extensive traffic restrictions on August 31 as the capital hosts the fourth edition of L’Étape Romania by Tour de France. Several major boulevards and central streets will be closed between 07:00 and 14:00 to allow more than 2,500 cyclists to take part in the event, the organizers said. The closures will affect […]
BT Arena, in Romania’s Cluj-Napoca, is set to host a disco and eurodance blast from the past with internationally famous bands during the DISCOTECA ‘80-’90 event in September. Vengaboys, Blue, Mr. President, 2 Unlimited, Bonnie Tyler, Boney M with Liz Mitchell & Band, Samantha Fox, Sabrina, and others will take the stage during the third […]
Districts 2, 3, and 4 in Bucharest are without hot water as of the time of writing due to a major breakdown that occurred on Sunday, August 17, on a main pipeline of the city's public heating system. The pipeline is located in central Bucharest, at the intersection of Mihai Bravu Road with Splaiul Unirii, under […]
