Romania Industrial Producer Prices Rise 8.8 Percent in July

Industrial producer prices in Romania rose 8.8 percent year-on-year in July, according to data from the National Institute of Statistics. While this represents a moderation from the double-digit inflation levels recorded in May and June, prices still increased 0.7 percent compared to June. The external market experienced a larger monthly rise of 1.38 percent, while the domestic market grew 0.42 percent.

Sectoral data shows the sharpest annual increases in water supply, sewerage, waste management, and remediation, which rose 14.73 percent. Mining and quarrying increased by 10.24 percent, and manufacturing rose 9.65 percent. By industrial grouping, intermediate goods saw the highest annual rise at 11.4 percent, and energy prices grew 10.55 percent. Within the energy sector, oil refining prices surged 44.86 percent annually.

Despite the slowing pace of factory-gate inflation, the National Bank of Romania raised its full-year inflation forecast to 6.1 percent. The central bank cited expected high costs for fuel and electricity as primary drivers and stated it does not expect consumer inflation to return to the target range of 1.5 percent to 3.5 percent until the end of 2027.