Romania's Inflation Expected to Decline and Stabilize by 2026, Says Central Bank Governor

Romania's Inflation Expected to Decline and Stabilize by 2026, Says Central Bank Governor

Romania

The annual inflation rate in Romania is expected to follow a downward trend throughout 2024 before stabilizing in the upper half of the target range starting in 2026, according to National Bank of Romania (BNR) Governor Mugur Isărescu, CE Report quotes Agerpres

Speaking on Monday, Isărescu noted that while no major inflationary pressures are expected in the first half of the year, fluctuations will occur due to past economic shocks and base effects. He highlighted that indirect tax hikes in early 2024 and reductions in energy and food prices would influence inflation dynamics. However, inflation is projected to remain below 5% and continue declining from summer onwards.

Isărescu also addressed claims that Romania had the highest inflation in the region, emphasizing that, compared to non-Eurozone peers like the Czech Republic, Poland, and Hungary, Romania had the lowest inflation until last year. He acknowledged that the decline in inflation has been slower in Romania but pointed out that, as of January 2025, Poland and Hungary now have higher inflation rates.

Regarding monetary policy, he stressed the importance of financial stability and a cautious approach to interest rate adjustments. While a rate cut is possible, it must be carefully managed to avoid currency depreciation risks.

The BNR's outlook suggests that Romania’s inflation trajectory remains under control, with monetary policy playing a key role in ensuring long-term stability.

Tags

Related articles

Romanian Runner Meringor Banned for Doping
Kenyan-born Romanian long-distance runner Delvine Relin Meringor has been handed a three-year doping ban, according to Kenya’s Anti-Doping Agency.
Chirila Retains Canoe Sprint Gold
Romanian canoeist Catalin Chirila claimed gold in the men's 1,000-metre single event at the 2025 ECA Canoe Sprint and Paracanoe European Championships in Racice, Czech Republic.
Ilie Bolojan Appointed Prime Minister of Romania
President Nicușor Dan appointed Ilie Bolojan, interim leader of the National Liberal Party (PNL), as Romania’s new prime minister on Friday.
Romania Hails UK Ties on King’s Birthday
Romanian President Nicușor Dan praised the United Kingdom as a strategic partner, ally, and trusted friend during a reception marking King Charles III’s birthday on Thursday.
USR Endorses Ilie Bolojan for Prime Minister
USR Chair Dominic Fritz announced Thursday that the Save Romania Union (USR) officially supports Ilie Bolojan for the position of prime minister.
"Sibiu Festival Opens with 5,000 Artists"
The 32nd Sibiu International Theatre Festival (FITS) begins this Friday, bringing together over 5,000 artists from 82 countries for 841 performances across ten days.
Oradea and Uzhhorod Universities Partner Up
The University of Oradea (Romania) and Uzhhorod National University (Ukraine) have signed a Memorandum of Understanding to strengthen cooperation in education and research, the Romanian institution announced on Wednesday.
Romania to Host NATO Ammo Hub
During a visit to Dambovita County on Tuesday, Economy Minister Bogdan Ivan announced that Dragomirești will become home to NATO’s Ammunition Centre of Excellence for all of Europe.
Schengen Boosts Unity with New Members
STRASBOURG – European Parliament President Roberta Metsola hailed the recent accession of Romania and Bulgaria to the Schengen Area as a major step toward a more united and secure European Union.
Romania Joins Schengen at 40
Romanian Foreign Minister Emil Hurezeanu attended the 40th anniversary of the Schengen Area on Saturday in Schengen, Luxembourg.
Romania Marks 145 Years with U.S.
On the 145th anniversary of diplomatic relations with the United States, Romanian President Nicușor Dan expressed his commitment to strengthening ties with President Donald Trump.
Banat Germans Begin Diocese Jubilee Countdown
The Banat Swabian community is preparing for a historic milestone — the 1000th anniversary of the founding of the Timisoara (originally Csanád) Diocese in 2030.