Romanian inflation outpaces Hungary as food prices diverge sharply

Recent months have seen food prices drop in Hungary after the government altered its anti-inflation strategy and the forint appreciated, making it the region’s best-performing currency. In contrast, Romania’s inflation has surged, driven by higher fuel costs, rising rents and service price hikes, while food price changes remain modest. The National Bank of Romania left its policy rate unchanged and projected further inflationary pressure through the end of the year, citing global commodity trends and regional drought.

The IMF warned that Romania could end up with one of the highest inflation levels in the European Union. Hungarian policymakers, including Prime Minister Orbán and his successor Péter Magyar, have defended their approach as bringing stability, though retailers are now urging the new premier to lift profit-margin caps.