Romania’s annual inflation rate dropped to 16.4 percent in December 2022 from 16.8 percent in November, as food prices rose 22.05 percent, non-food prices increased 14.95 and services grew by 9.78 percent more expensive, shows data released on Friday by the National Institute of Statistics (INS).
December’s consumer prices inched up 0.37 percent compared to November 2022, with the cost of food growing 1.26 percent for the month, services getting 0.67 percent more expensive, while non-food prices dropped 0.32 percent.
Compared to the previous year, the average consumer price rate in the past 12 months (January – December 2022) is 13.8 percent.
The Harmonized Index of Consumer Prices (HICP), an inflation indicator for EU member states, is 100.12 percent in December compared to November 2022.
The annual HICP inflation rate is 14.1 percent in December 2022 compared to December 2021. The HICP-based average consumer price rate in the last 12 months (January 2022 – December 2022) is 12 percent compared to the previous 12 months (January – December 2021).
According to data presented by central bank governor Mugur Isarescu in November, the National Bank of Romania increased its year-end inflation forecast for 2022 to 16.3 percent and estimates inflation to be 11.2 percent at the end of 2023.
Ludovic Orban: The Government has lost fight against inflation
The president of the Force of Right Party, Ludovic Orban, states that the Government has “lost the fight against inflation”, stressing that after the analysis of the Government’s measures, the question arises “whether the Executive has intentionally allowed inflation to grow” to obtain higher budget revenues.
“Inflation for 2022 announced by the Statistics Institute is 16.4%. In reality, the price increase felt by people is higher. A family’s expenses have increased by at least 25%. Because the biggest price increases have been registered for the products and services that are part of a household’s monthly expenses. Electricity, natural gas and heating expenses increased by almost 40%. No matter how many festive results the Government will present for the year 2022, the sad reality is that the Government has lost the fight against inflation. Although, analyzing the Government’s measures, it is perfectly legitimate to ask whether the Government has deliberately let inflation rise in order to obtain more revenues to the budget,” Ludovic Orban wrote on Facebook on Friday.
He emphasizes that “the Government, by letting inflation grow to such a level, caused the reduction of the purchasing power of incomes and condemned the worsening of the living conditions of almost all Romanian citizens”.
“Not only for 2023, but in the medium term, because the recovery of purchasing power will be very slow, because it will be slowed down by the reduction in economic growth and the prospect of maintaining double-digit inflation in 2023 as well”, he says.
He says that the mission of a government is to adopt economic policies that lead to an increase in the quality of life, to an increase in the income of citizens.
“The government of the mammoth coalition failed miserably in this regard, causing the biggest drop in the standard of living in the last 12 years”, concludes the former prime minister.