Economy 13 June 2023, 12:00pm

Romania reaches what Hungary can only dream of

Portfolio

Inflation in Romania continued to decelerate but was still in double digits in May 2023, with consumer prices 10.6% higher than in the same month of 2022. Meanwhile, the year-on-year rate in Hungary was 21.5%.

In annual terms, food prices rose the most, by 18.73% on average, while non-food products and services prices went up by 5.15% and 11.16%, respectively, according to the National Institute of Statistics (INS).

Compared to May last year, sugar prices jumped the most (+59), followed by butter (+32%), margarine (+31%), eggs (+30%), potatoes (and vegetables in general, +26%) and fresh milk (+24%).

According to the INS, two product categories have seen price reductions: medicines are on average 3.7% less expensive than in May 2022, while fuel costs 9.05% less.

The rise in consumer prices has not stopped in Romania, but compared to April, the INS measured an average increase of only 0.36%. The consumer price index in Romania rose by 0.65% compared to December last year.

Consumer price increases in Romania has been in double digits for more than a year, exceeding 15% from June last year until March this year. Annual inflation peaked at 16.8% in November last year, followed by a moderate slowdown, apart from a temporary pause in February.

Consumer prices in Romania were 14.7% higher on average in the last 12 months compared to the period June 2021 to May 2022.