After the Government enforced the ‘cap and subsidy’ mechanism for the residential energy prices 9electricity and natural gas), the price of electricity dropped by 12.2% MoM in November, and this offset the moderate increase in the prices of fuels (+1.7% MoM), natural gas (+2.3% MoM), heating (+10% MoM) and of some food products (edible oil, sugar), according to Romania-Insider.com.
Notably, natural gas price kept increasing in November (+2.3% MoM) despite the same subsidization mechanism enforced as in the case of electricity.
In annual terms, the main inflationary drivers are the price of fuels (+25% YoY) and energy (electricity, gas, heating +23% YoY).
But the prices of some food items have increased significantly as well: that of the edible oil rose by 28% YoY, while those of the sugar and maize by 10%-12% YoY.
Looking forward, the energy prices are expected to pass through to the consumer goods prices resulting in persistent inflationary impetus.
Romania’s industrial price inflation soared to 26.8% y/o in October, largely due to the high energy cost, putting pressure on the consumer price inflation that neared 8% y/y in the same month.
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