Romania Inflation Calculator

Inflation measures the general increase in prices of goods and services in an economy. In Romania, the Consumer Price Index (CPI) is calculated monthly by the National Institute of Statistics (INSSE) and is the main indicator of inflation.

The National Bank of Romania (BNR) targets an inflation rate of 2,5% ±1 percentage point (range: 1.5%–3.5%). This target is part of the price stability strategy, implemented through the reference interest rate policy.

What drives inflation in Romania?

• Energy and food prices — Romania is sensitive to price shocks in the energy market (natural gas, electricity, fuels). In 2022, inflation reached 13.76% mainly due to the energy crisis.
• Monetary policy — The BNR interest rate influences the cost of credit and, implicitly, aggregate demand. A low rate stimulates consumption but can fuel inflation.
• Exchange rate — The depreciation of the leu against the euro increases the price of imports (imported inflation), given that Romania imports a significant share of consumer goods.
• Wage increases — Increases in the minimum wage and public sector wages can generate inflationary pressures by boosting consumer demand.
• Excise duties and VAT — Changes in excise duties on fuels, tobacco, and alcohol, as well as adjustments to the VAT rate, have a direct impact on prices.
• Global factors — Oil prices, raw material prices, and supply chain disruptions (e.g., pandemic, war) influence domestic inflation.

Inflation evolution in Romania

In the 1990s and early 2000s, Romania experienced a period of very high inflation (over 150% in 1997) due to economic transition. After joining the EU in 2007, inflation stabilized at lower levels, even reaching deflation in 2015 (-0.59%) and 2016 (-1.54%), following the VAT reduction from 24% to 19%.

The period 2021–2023 brought a new significant increase in inflation, driven by the COVID-19 pandemic, the energy crisis, and the conflict in Ukraine. In 2022, annual inflation reached 13,76%, the highest level in 19 years.

How to protect yourself from inflation

• Investments in government bonds (e.g., Fidelis, Tezaur) with yields above inflation
• Bank deposits with fixed interest higher than estimated inflation
• Diversification into stocks, ETFs or gold
• Investments in real estate — have historically kept pace with inflation in Romania
• Avoiding excessive accumulation of cash which loses value