Energy price were sent to food, while services felt less of a shock, being less intensely energetic, while the National Bank of Romania ( BNR) is trying to counteract these “second round effects”, Cristian Popa, a member in the BNR Administration Board wrote on his Facebook page. “Inflation pressures remain ample, this time behind the inflation evolution there were food products, energy prices were practically sent to food, while services felt the shock less, being less energetically intensive. The transmission rate, the influence of energy price increase in the rising price of food, is very rapid and strong. Maybe only the exchange rate can have a higher transmission rate than energy prices. BNR is trying to counteract these second round effects, generated by energy prices, through a certain stability of the exchange rate. Higher interest rates help us for exchange rate stability. If we are at less than half the inflation rate with interest rates and with monetary policy interest rates lower than in Hungary, Poland and Czech Republic. Second round effects will continue and BNR, knowing that monetary policy cannot stop the energy crisis or military conflict, has increased the interest rate by 0.5%,” Popa wrote. He mentioned that measures were taken by the book. BNR began in sprung last year by stopping the purchase of state bonds, the firm control of cash flow and rising interest rates. “Measures will continue, they have to. Moreover, economic growth is losing down, positive gap is closing, reducing inflation pressures from demand. We have a major problem, which we know is difficult to solve I the middle of a major crisis (pandemic and war at the border): we have two major deficits. These are the fundamental problems. We entered pandemic with the biggest deficits, and we are getting out of it in the same way,” Popa showed. The annual inflation rate went up to 10.15% in March 2022, from 8.53% in February, in conditions in which non-food products were more expensive by 10.86%, foodstuff by 11.20% and services by 6.53%, according to data supplied by the National Statistics Institute on Tuesday.
The multimedia exhibition Aici Se Vede Jazz (Here You Can See Jazz), set to open at SAC Berthelot in Bucharest, explores how jazz found its way in the pre-1990 Bucharest and “the contemporary ways to listen, visualize, perform and relate artistically to its world of sounds and ideas.” Bucharest had improvised studios, rehearsals with the […]
Aon Romania, part of the global group Aon plc, draws attention to the urgent need for structured solutions to protect trade receivables in an economic context characterized by high volatility and geopolitical uncertainty. The subject was central to the discussions at TRADE CREDIT TALKS - Receivable Protection in the Age of Volatility, where business leaders […]
Bucharest’s shopping centres posted mixed financial results in 2024, with major discrepancies between the city’s largest malls and mid-sized retail centres, according to financial analysis platform RisCo.ro. The data shows contrasts in profitability and turnover, as well as significant losses among some of the capital’s biggest retail projects. AFI Cotroceni recorded the highest turnover of […]
Nearly nine in ten Romanians expect to spend less or no more than last year on Christmas shopping, according to a new survey by tbi bank that highlights the impact of rising prices on household budgets ahead of the winter holidays. The nationwide poll, conducted in October on a sample of 1,011 respondents, shows that […]
A total of 77% of homeowners who answered a survey by ING and Ipsos said they implemented measures in the past three years to improve energy efficiency. The need to save on energy bills was the main driver of household modernization, the survey showed. Most respondents (62%) said they did so to reduce energy costs, […]
The Romanian Constitutional Court (CCR) has ruled that a series of tax increases, including higher levies on housing, land, cars based on pollution norms, and stock market gains, may take effect starting January 1, 2026, Biziday.ro reported. The Court rejected a challenge filed by the opposition party AUR against the government’s fiscal reform law, on […]
