Click the image to see it full size. The first years after 2000 are still characterized by the slow fading out of the hyperinflation caused in the 1990ies. After 2005 Romania implemented a system of inflation targeting, yet it is hard to say if the adoption of this system has a causal relationship to the slow improvements during the last years. Inflation pressures still arises from the convergence of consumer prices of tradable goods, in combination with a deprecating exchange rate and a kind of Balassa-Samuelson effect. But also a large amount of money from some 2 million Romanians, working abroad and sending money to their families at home might cause some pressure for inflation.

Back to Romania: Inflation Rate and Consumer Prices.

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