Romania's inflation rate climbs to 5.5% in May 2025, surpassing the rates of 4.9% seen in both April and March.
Inflation Rises High in Romania: Here's the Breakdown
The annual inflation rate in Romania hit a staggering 5.5% in May 2025, as per the National Institute of Statistics (INS). This figure represents a significant jump from the 4.9% recorded in April 2025 and matches the rate seen in March.
(Insights: This inflation rate puts Romania at the forefront of EU countries with the highest inflation.)
Let's dive into the specifics of the price changes across different categories:
Food Goods
Food prices saw a significant rise over the past year, with fish and seafood leading the pack, experiencing an increase of 18.8%. Not far behind were fruit and fruit preserves (17.8%), vegetables and vegetable preserves (14.43%), and oil (9.1%).
(Insights: Euro area data suggests that food, alcohol, and tobacco inflation averages around 2.9%, implying food inflation in Romania could be at least this level or higher given its overall inflation of 5.4%.)
Non-Food Goods
Although non-food goods inflation tends to be more moderate, Romania's overall higher inflation implies a higher increase for these goods, though still less than food and services. Some of the items registering the largest price hikes include thermal energy (13.63%), knitwear (7.33%), books, newspapers, magazines (7.2%), and gas (7.12%).
(Insights: Euro area data suggest these goods have inflation rates around 0.6%, but Romania’s overall higher inflation implies somewhat higher increases for non-food goods.)
Services
Services experienced the highest increases of all categories, with hygiene and cosmetic services seeing the most significant rise at 14.16%. Water, sanitation, and industrial services were close behind, with increases of 11.81%, 11.77%, and 10.58%, respectively. Medical care services also saw an increase of 10.06%.
(Insights: Given Romania's higher overall inflation, service prices may have risen even more, contributing heavily to the headline 5.4% inflation rate.)
High Inflation Predicted to Last
As Romania’s central bank revised its inflation forecast to 5.1% at the end of the second quarter, citing the planned lifting of the energy price capping mechanism at the end of June 2025, higher core inflation contributions, and increased supply chain issues, inflation is expected to remain at elevated levels. By the end of the year, the bank anticipates inflation will fall to 4.6%, and 3.4% at the end of 2026.
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Finance experts predict that the high inflation rate in Romania could lead to increased costs across various sectors, potentially impacting the overall economy. The revised inflation forecast by Romania's central bank suggests that inflation might persist for the remainder of 2025 and could affect future financial planning and investment decisions.
