Romanian Inflation Stagnates as Impact From Tax Hikes Lingers
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en4(6yal{dpuncmh1gfvjo0c_media_dl_1.png BloombergArticle content(Bloomberg) — Romanian inflation stagnated last month as a raft of tax hikes and austerity measures to narrow a budget deficit that’s become the widest in the European Union continues to impact prices. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentConsumer prices rose 9.8% from a year earlier in November, similar to Oct. reading, the statistics office in Bucharest said Friday. The inflation rate was above the 9.6% median estimate in a Bloomberg survey. Prices increased 0.4% from the previous month. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe report should buttress the central bank’s caution, with the benchmark rate unchanged at 6.5% since mid-2024 to help the economy overcome several shocks triggered by the worst political crisis since the collapse of communism. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!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.Article contentRomania’s pro-EU government adopted a series of tax increases earlier this year to trim the budget shortfall of more than 9% of GDP. That pushed inflation to almost 10%, the highest level in two years. Article contentPolicymakers in Bucharest have said repeatedly that the inflationary shock, driven by factors outside the central bank’s control, is transitory and price growth will slow sharply in the second half of 2026.Article contentInflation should have a “marginal retreat expected by year-end, while core inflation has similarly plateaued,” said Vlad Ionita, a Bucharest-based economist at Erste Group Bank AG. “Against this backdrop, the probability of a near-term rate cut is exceedingly low. Our baseline anticipates the first reduction likely at the May meeting.” Article contentRomania had one of the highest rates of inflation in the EU even before the government increased a value-added tax and eliminated some energy-price caps in an effort to trim the budget deficit toward 6% of GDP next year. Article content—With assistance from Irina Vilcu and Barbara Sladkowska.Article contentTrending Canadian households boost their wealth to another record high of $18.4 trillion with ‘supercharged' financial asset growth Wealth CRA penalized taxpayer for repeated failure to report income Personal Finance U.S. trade deficit unexpectedly shrinks to smallest since 2020 Economy Who is Mark Wiseman? The career of the man expected to be Canada’s new U.S. ambassador Finance This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation 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. Canadian households boost their wealth to another record high of $18.4 trillion with ‘supercharged' financial asset growth Wealth CRA penalized taxpayer for repeated failure to report income Personal Finance U.S. trade deficit unexpectedly shrinks to smallest since 2020 Economy Who is Mark Wiseman? The career of the man expected to be Canada’s new U.S. ambassador Finance This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth