Alexandru Nazare welcomes the decrease in inflation, but warns that Romania cannot afford to abandon fiscal adjustment

Interim Finance Minister Alexandru Nazare welcomes the accelerated decline in inflation but warns that Romania must maintain fiscal correction and avoid returning to the imbalances that fueled debt and financing costs.

The annual inflation rate fell to 6.2% in August, from 8.2% in July and more than 10% in June. Nazare says this is the fastest deceleration in recent years and that the result reflects not only statistical effects but also moderating domestic demand, a reduced deficit and lower financing costs.

The minister states that, excluding fuel, consumer prices fell by 0.08% in a single month, while food prices decreased by 0.7%. The main pressure comes from the international oil market, with petrol and diesel the only categories recording double-digit price increases. For this reason, the population is not fully feeling the decline in inflation.

Nazare says that the budget deficit in the first seven months was 37% lower than during the same period last year, while public investment increased by 15 billion lei. He emphasizes that the budget adjustment was carried out without halting construction projects and warns that Romania cannot afford to take steps backward.