Romanian Inflation Slows Less Than Expected as Tax Hikes Weigh

Romanian inflation eased less than expected as the government’s tax hikes and austerity measures continue to weigh on prices and prevent the central bank from easing monetary policy.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Romanian inflation eased less than expected as the government’s tax hikes and austerity measures continue to weigh on prices and prevent the central bank from easing monetary policy. Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.Consumer prices rose 9.6% from a year earlier in January, compared with 9.7% in the previous month, the statistics office in Bucharest said Monday. The reading was above the 9.4% median estimate in a Bloomberg survey. Prices advanced 0.9% from the previous month. Romania’s central bank is waiting for inflation to slow before it can consider potential interest rate cuts that could ease the strain on the recession-hit economy. Price growth jumped to almost 10% last year when the government raised some taxes and curbed spending after the country emerged from its worst political crisis in decades. The measures, which included scrapping of a cap on energy prices, were needed to narrow the European Union’s widest budget deficit. Bickering inside the four-party ruling coalition has delayed more spending cuts aimed at trimming the gap to 6.2% of GDP this year, from 7.7% in 2025, but Prime Minister Ilie Bolojan expects to push through additional measures in the next few weeks.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.The central bank, which has an inflation target range of 1.5% to 3.5%, sees price growth slowing to 3.7% at the end of 2026.

Governor Mugur Isarescu signaled in November that any talk of interest rate cuts wouldn’t likely happen before summer. Officials will meet on Tuesday to discuss monetary policy and a fresh inflation outlook, after holding the key rate at 6.5% since the middle of 2024. —With assistance from Andra Timu and Joel Rinneby.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.