The VAT increase pushed inflation to nearly 10% in August, announced the National Institute of Statistics.
The annual inflation rate in August 2025 compared to the same period of the previous year was 9.85%.
Compared to July 2025, inflation increased by 2%, with the highest growth seen in non-food goods and services, as reported by Biziday.
Main price increases in August, compared to July, were recorded in:
Food:
- Coffee +4%
- Alcoholic beverages +3.3%
- Eggs +3.1%
- Bread +3%
- Cow's milk +3%
- Meat +2%
Non-food goods:
- Books +5.7%
- Fuels +3.3%
- Cigarettes +2.85%
- Electricity +2.5%
- Medicines +2.3%
Services:
- Airline tickets +11%
- Tailoring +5.8%
- Hairdressing/Cosmetics +5.6%
- Hotels +4.5%
- Restaurants +4.2%
- Auto repairs +3.2%
- Railway tickets +1.43%
Very high annual increases
Annual increases were even higher, with electricity registering the largest jump.
Food products increased by 8.92% in August 2025 compared to August 2024. Fresh fruits saw the highest increase, at 41.73%.
Non-food goods increased by 10.48% in August 2025 compared to August 2024. Electricity had the highest growth in this category, at 65.73%.
Services increased by 9.85% in August 2025 compared to August 2024. The highest increases were seen in hygiene and cosmetic services, at 19.27%, as well as railway tickets, at 18.59%.
Last month, the National Bank of Romania (BNR) significantly revised its inflation forecast for 2025, from 4.6% to 8.8%.
BNR Governor Mugur Isărescu stated that the Romanian economy is currently facing several major shocks and warned that inflation could reach over 9% by the end of the year, peaking in September.
“In September, the peak will probably be, instead of 9%, probably 9.6-9.7%, followed by a gradual absorption of these shocks, and indeed, in our forecast, by the end of next year, inflation will not only enter the targeted range but will be even lower than the inflation forecasted in the previous inflation report. In other words, pay attention to the figures.
At the end of the year, 8.8%. It will probably exceed 9%. And we keep the 3% forecast from December 2026, slightly below the data from the previous forecast. Three major shocks that will be absorbed in the coming period, if we avoid secondary effects. Deterioration of inflation expectations is not easy after such price increases. This is the forecast, so we have a nice hump, so to speak, it is even slightly larger,” added the BNR Governor.