Macroeconomic Forecast Romania

Romania's consumer price inflation marginally ticked up in October to 3.6% y-o-y, from 3.5% y-o-y the previous month. This reflected a 0.6% increase in month-on-month terms (m-o-m), and was driven by a 0.8% m-o-m increase in both food goods and tariffs for services, while prices of non-food goods increased by 0.5% m-o-m. Although this uptick may cause the country's monetary authorities to question their policy stance, since they cut the benchmark policy rate by 25bps for the first time in nineteen months in their November meeting, we do not expect inflationary pressures to persist going forward.

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