Inflation in Romania Stagnates as Tax Hikes Continue to Weigh on Prices

Inflation in Romania remained stagnant last month as the impact of tax hikes and austerity measures aimed at reducing the country’s widening budget deficit continued to weigh on prices.

Official data showed that annual inflation stood at 9.8% in November, broadly unchanged from October, highlighting persistent price pressures across the economy.

The inflation reading came above the median estimate of economists, underscoring that recent tax increases are still feeding into consumer prices, while monthly prices rose by 0.4%.

Fiscal Measures and Outlook

Economists say that while fiscal tightening is necessary to curb the deficit, it continues to complicate the outlook for inflation, which is expected to remain a key factor shaping economic policy decisions in the months ahead.