Rising oil, gas and fuel costs threaten to stall Romania's inflation decline
Higher prices for crude, natural gas and motor fuels could slow the recent drop in Romania's inflation, analysts say.
Consulted analysts note that the resurgence of Brent crude near $100 a barrel, together with a 125% surge in wholesale gas prices, may reignite inflationary pressures in Romania. Silviu Gresoi describes the diesel price increase of roughly 2 lei per litre as a cost shock affecting transport, manufacturing and services. Bogdan Maioreanu points out that fuel price inflation peaked at about 17% in July after a 19% rise in May, making Romania the EU country with the steepest fuel price gains.
Temporary caps on fuel prices can mask but not eliminate the underlying cost transmission. Persistent high energy prices could keep consumer prices elevated and hinder further inflation easing.
Why it matters
Energy price spikes could keep living costs high for Romanian households and slow inflation recovery.
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