Radio România Internațional

Tag: hikes

Romania has higher inflation rate

In November 2022, Romania’s inflation rate stood at
16.8% exceeding the forecast announced by the Central Bank governor, Mugur
Isarescu, of 16.3%. That has been the highest inflation rate in the past two
decades. In 2002, Romania reported an annual inflation rate of 22.5% and from
2005 until last year the country had only single-digit inflation rates.

This alarming pace seemed to be
slightly going down at the beginning of the year, but went up again last month
as compared to January from 15.07 to 15.52% against the latest price hikes in food
products and services. Figures released on Monday by the National Institute for
Statistics prove that the prices of these products and services saw the highest
increase in the first months of the year, but experts say this shouldn’t alter
the forecast by the Central Bank (BNR) according to which the inflation rate will
again return to single digits towards the end of the year.

Food prices saw the most significant
increase in February by roughly 3.4%, while services rose by 2.5%. At the same
time, prices in non-food products slightly dropped by 0.5% on an average.

Significant price hikes were registered last month in
the category of fresh and canned vegetables, up by 6.35% followed by the fresh
fruits with roughly 4.9% and services for making and mending clothes and
footwear over 3.5%.

Prices in fresh fish, cheese, personal hygiene and
care products as well as other non-food products have grown between 2% and 3%.

Prices in air transport services went down by more
than 12%, whereas prices for cooking oil, electricity and heat by 1% on an
average. According to the latest forecasts, prices were supposed to continue
their downward trend, but experts said this process isn’t a linear one. The
same tendency has been noticed in other EU countries as well where the
inflation rate in February proved to be higher than a month before.

According to experts, this process of keeping
inflation at bay is likely to continue but will have its monthly ups and downs.
In a Radio Romania interview, the financial expert and Central Bank advisor,
Adrian Vasilescu, has confirmed this theory.

In the meantime, the INS data show that Romania’s
trade deficit in January stood at 2.338 billion euros, 203.6 million higher
than in January 2022. The rise was partly caused by the growing inflation,
which raised the imports value, but the main cause is the fact that the
domestic output cannot cover the demand, not even in sectors with tradition,
such as the agro-food industry, the chemical or the car-making sectors. Experts
say that the authorities should step in and take action in order to prevent the
situation from worsening.

(bill)

14 March 2023
September 20, 2022

LONDON The custodian of the Romanian crown,
Margareta, and Prince Radu took part in a family reunion at the Windsor Castle
upon the invitation of King Charles III after the funeral of Queen Elizabeth II.
Over 100 heads of state and government and members of the royal families from
around the world attended the ceremonies in London while hundreds of thousands
lined the streets to say farewell to the revered monarch. The event, which
brought together the largest number of world leaders ever, was also attended by
US president Joe Biden and also by the head of the Romanian state, Klaus
Iohannis.

VISIT Romanian president Klaus Iohannis
is today and tomorrow heading the Romanian delegation attending the 77th
session of the UN General Assembly. The meeting’s agenda includes several
topical issues, such as peace and security, sustainable development, social
inclusion, cybersecurity, human rights, biodiversity, water management and
global challenges. The Romanian president is expected to highlight the need for
joint solutions at global level to issues like energy security, climate changes
and access to education. Iohannis will today be attending a global summit on
food security, where he will be mentioning Romania’s efforts to ensure the
transit of Ukrainian grain and its commitment to avoiding a food crisis. In a
video message on Monday at Transforming Education summit in New York, Iohannis
spoke about Romania’s commitment to upgrading its education system and
protecting its citizens from the challenges of the economic environment.

DROUGHT 600 thousand hectares of Romania’s farmland have been
affected by drought, the Ministry of Agriculture has today announced. The
country’s autumn crops of barley, rye and oat are presently bearing the brunt
of the extended drought. Some of the most affected spring crops are maize,
sun-flower, soy and fodder plants.

LAW The government emergency ordinance
regulating energy prices has been submitted to the specialized Senate
committees. The document could get amended by Parliament, after both ruling and opposition parties have forwarded amendments. One such amendment
includes among the categories benefitting from capped prices, the religious
cults, the pharmaceutics industry and public transportation. Household owners
using special medical treatment devices could also benefit from capped prices.
In another development, the ruling coalition seems to have reached an agreement
over extending the 10 cents fuel subsidies with another three months.

ECONOMY Roughly half of the Romanians (47%) have reduced spending
this year to cope with the latest price hikes, whereas a quarter are saving
money for education and professional training, an Erste Group poll entitled ‘Money
Matters’ shows. According to the same sources, the Romanians have adjusted
their financial behaviour against the rising inflation and the latest price
hikes.

(bill)

20 September 2022
Romania caps energy prices again

In an attempt to ease the pressure caused by higher energy and gas bills, the government in Bucharest will endorse new support measures to be approved through an emergency ordinance. A decision was needed in this respect because the previous measures to support companies and household consumers, which have been applied from November, are valid only until April 1st.

According to Energy Minister Virgil Popescu, the measures have already been discussed with representatives of the Romanian Energy Regulatory Authority, as well as with energy providers and distributors.

Virgil Popescu: “We are waiting for the Regulatory Authority to integrate into the emergency ordinance some issues that are related to regulation fees. After we have completed talks with all the market players we next want this emergency ordinance endorsed so that we may have the new scheme operational starting April 1st.”

The new government solutions presented on Monday by Prime Minister Nicolae Ciuca include caps and subsidies for the aforementioned utilities. Electricity and gas will be capped for a year, and according to the Prime Minister the measure will offer the business environment and citizens stability in accordance with free market rules

Nicolae Ciuca: “Household consumers will benefit from a social fee of 0.68 lei per kilowatt, including the VAT for households with a monthly consumption up to 100 kilowatts. Household consumers with a monthly consumption between 100 and 300 kilowatts will have to pay 0.8 lei per kilowatt whereas consumers with an annual consumption up to 12 hundred cubic meters are to pay 0.31 lei per kilowatt”.

The impact of these measures has been estimated around 3 billion euros by the end of the year. But a survey by the Intelligent Energy Association reminds that Romania is one of the three European countries, which decided to cap prices to support their population. However, the capped price is 1.7 higher than the market price and that makes the aforementioned support measures the least effective in the EU. The new measures are even less significant if we take into account that Romania is the second country in the EU in terms of the negative impact energy bills have upon the family budget – double than the European average in 2022, the survey also shows.

(bill)

15 March 2022
Economic growth estimates for 2022 go down

The National Commission for Strategy and Prognosis in
Bucharest has revised down its economic growth forecast for this year to only
4.3%, 0.3% down as compared to its previous estimate. The forecast is mainly
based on the growing inflation rate, presently at 8% and expected to hit two-digit
figures shortly, but also takes into account the fifth wave of the Coronavirus
pandemic and the energy crisis.

Authors of the aforementioned forecast have explained that all the estimates
have been done without taking into account a potential conflict caused by the
geopolitical tensions at the border with Ukraine.

The 4.3% growth has been done in keeping with the higher
energy prices, which may hamper activity especially in the chemical and steel
industry, known to be major energy consumers.

At the same time, dysfunctional supply chains, which
contribute to price hikes on the market, are believed to continue. Even if such
dysfunctionalities are diminished, they will continue to affect the car and
electric equipment manufacture.

Services are expected to register a low increase, especially
in the household sector, whereas constructions are to see a more significant
development than estimated in autumn. Growth in this sector is expected to become
visible against the same period last year, when activity slowed down but also
because of an envisaged impetus given by the incoming European funds.

The Commission has also forecast lower growth in private
consumption and investment against the previous estimates. Research has also been
made on the impact of the energy price hike upon the inflation rate, which translates
into higher consumer prices.

This increase is to be felt less in February thanks to the
new regulations aimed at capping these prices, but is to gain momentum in
April.

Slight
increases are also expected in July and at the beginning of the cold season.
Estimates point to an inflation rate of 9.5% at the end of the year within the annual
average of 9.9%. The estimates don’t take into account other protection measures
for the population though. Suchlike measures are to be quantified in the commission’s
further forecasts.

According
to data released on Tuesday by the National Institute for Statistics, Romania saw
a 5.6% economic growth last year whereas its GDP dropped 0.5% in the last
quarter of 2021 as compared to the previous quarter, but rose 2.2% against the
same period of 2020.

(bill)

17 February 2022
January 6, 2017

WEATHER — It is gradually getting colder in Romania, with freezing temperatures especially in the west, centre and the north. The sky is overcast and it is snowing on large areas, more heavily in the south, the east and the mountains. Gusty wind is also reported in places, particularly in the south and southeast, where it exceeds 70-85 km/h in places. The highs of the day range from minus 10 to 0 degrees Celsius. The southeastern part of the country is under red code alert against blizzard, in the first part of the day. The code yellow alert against snow is valid for the south and the east and a code orange alert against blizzard is valid for the south-east, Bucharest included. The counties in the east will further be under code yellow alert until Saturday. Tens of national roads have been closed and hundreds of localities have been left without electricity because of the blizzard.

MOLDOVA — Blizzard and extremely low temperatures are also reported in the Republic of Moldova, a former Soviet state with a predominantly Romanian speaking population, where a code orange alert against heavy snowfalls is in force, in the centre and the south. Moldovan meteorologists have forecast temperatures of minus 17 degrees Celsius and issued a code yellow alert against low temperatures, between January 6 and 9. In this context, the Civil Protection and Emergency Situations Service has warned car drivers to properly equip their cars for winter conditions. The situation is similar in central Europe. Poland is swept by a wave of cold, with temperatures dropping to minus 25 degrees Celsius. Heavy snowfalls are reported in the northern half of Italy and Germany is facing the same situation, with a high risk of flooding. Bad weather is also reported in Denmark, Sweden and Croatia.

GOVERNMENT MEETING — The new government in Bucharest is analysing in today’s meeting, a 16% increase in the minimum gross salary, as of February 1, up to 1,450 lei (some 300 Euro). Representatives of major trade unions have hailed the announcement made by the government, but the employers’ associations show reservation. Also today, the salaries of public servants working in local administration will be increased by 20%, just like those of the actors and of other categories of artists. On Thursday, the Chamber of Deputies voted in a plenary session the law amending the Fiscal Code, and consequently pensioners with pensions of up to 2,000 lei (some 400 Euros) will be exempted from paying taxes on these sums. They will no longer pay for their health insurances, whose costs will be covered from the state budget. Sworn in on Wednesday, the cabinet led by the Social Democrat Sorin Grindeanu also pledges to reduce taxes, cut red-tape, build new factories and highways as well as high-speed railways. Economic analysts describe the governing program as very ambitious and point to the risks and impact on the budget.

BRUSSELS- The European Commission President Jean-Claude Juncker has posted on his Twitter page a message congratulating the Prime Minister of Romania, Sorin Grindeanu, on his recent appointment. The EU’s message reads: “we look forward to the continuation of the positive trend in Romania regarding a stable government, robust economic growth, increased productivity, rising living standards and an independent justice system that can sustain the fight against corruption.” The EU Commissioner assures PM Grindeanu that the EU executive remains a constant and reliable partner to Romania, be it through financial support or technical expertise.

BORDER POLICE — The Romanian border policemen deployed in Greece have rescued 34 refugees from Syria and Congo from the international waters of the Aegean Sea. The refugees, among whom 9 children, were on board an overloaded light boat, which was on point of overturning. It was the first intervention of its kind by the Romanian policemen. A patrolling and intervention boat of the Romanian Interior Ministry, with a 23 member crew, is carrying out surveillance missions along the external borders of the EU, in the Aegean Sea, for four months, as of January 1, as part of the Maritime Joint Operation “EPN POSEIDON SEA”, coordinated by the FRONTEX Agency. The border policemen carry out individual patrolling, search and rescue missions, alongside colleagues from other EU member states participating in the mission.

WikiLeaks — The CIA claims it has identified several Russian officials who, under the coordination of the Kremlin leader, Vladimir Putin, have sent stolen DNC emails to WikiLeaks. According to the CIA report, quoted by the CNN, Russia got involved in the electoral process in the US by supporting the campaign of the US President elect, Republican Donald Trump. The latter has expressed his scepticism over Russia’s involvement and, in his turn, continued to reject the accusations. Recently, the acting US President, Barack Obama, has ordered the expulsion of 35 Russian diplomats from the US over the alleged hacking.

EPIPHANY-The majority Christian orthodox believers in Romania are today celebrating the Epiphany, commemorating the baptism of Jesus in the Jordan River. (Translated by D. Vijeu)

6 January 2017