CEE ECONOMY — Romanian inflation rises more than expected, political crisis, drought cloud outlook
Romanian inflation up to 6.61% y/y in September Inflation expected to fall within target range at end-2027 Weaker currency, higher energy prices to feed into inflation BUCHAREST, Oct 13 (Reuters) — Romania's annual consumer price inflation rose more than expected in September and the central bank was seen holding interest rates well into 2027 as limited power supply after a drought and a weaker currency fed into price growth. Consumer price inflation rose to 6.61% year-on-year in September, data from the National Statistics Board showed on Tuesday, from 6.17% the previous month. Analysts had expected the annual rate at 6.45%. Prices rose 0.77% from the previous month. The central bank, which targets inflation at 1.5% to 3.5%, said this month that annual inflation would follow an upward trajectory until the end of 2026, driven by leu currency moves and higher fuel, energy and food prices. The bank will release new inflation forecasts for this year and next year in November. Policymakers held the benchmark interest rate at 6.50% earlier as a protracted political crisis drove the currency to record lows. Romania is on its fourth attempt to install a government after a pro-European coa
61% y/y in September Inflation expected to fall within target range at end-2027 Weaker currency, higher energy prices to feed into inflation BUCHAREST, Oct 13 (Reuters) — Romania's annual consumer price inflation rose more than expected in September and the central bank was seen holding interest rates well into 2027 as limited power supply after a drought and a weaker currency fed into price growth. 17% the previous month. 45%. 77% from the previous month.
5%, said this month that annual inflation would follow an upward trajectory until the end of 2026, driven by leu currency moves and higher fuel, energy and food prices. The bank will release new inflation forecasts for this year and next year in November. 50% earlier as a protracted political crisis drove the currency to record lows. Romania is on its fourth attempt to install a government after a pro-European coalition collapsed five months ago, putting pressure on debt yields, the currency and the country's investment-grade rating.
Romania's two nuclear power reactors have been shut down since August as drought lowered levels in the Danube river, from which waters are used as coolant, knocking out a fifth of power capacity and only partially offsetting it with renewables. 50% at least until May 2027, as core inflation is likely to stay sticky and is forecast to return within the central bank's target range only in the fourth quarter of 2027," Erste Bank said in a note. com; +4021 527 0312; )