“The results of the efforts made by society as a whole are beginning to show,” interim Prime Minister Ilie Bolojan wrote on his Facebook page, after the National Institute of Statistics (INS) announced that the annual inflation rate fell to 6.2% in August, from 8.2% in July and 10.4% in June. He expressed his regret that, nevertheless, the effects are still not sufficiently visible in the daily lives of Romanians.
Bolojan says that inflation would have fallen even further if fuel prices had not been affected by the external crisis. The prime minister expects the easing of this pressure to also reduce the impact on prices at the pump.
According to estimates by the National Bank of Romania, the inflation rate is expected to reach 6.1% at the end of this year and 3.4% by the end of 2027.
The interim prime minister also says that the budget deficit fell by 37% in the first seven months of the year, compared with the same period in 2025, while public investment increased by 15 billion lei. However, he points out that almost half of this year’s deficit, approximately 3% of GDP, is accounted for by interest expenses.
“If we had continued the model of huge deficits and borrowing, at increasingly burdensome interest rates, Romania would have ended up in an impossible situation. Today, we are paying the bill for those years. Almost half of this year’s deficit, around 3% of GDP, consists solely of interest expenses. These are resources with which Romania could have built a motorway every year,” Bolojan wrote on Facebook.
Bolojan argues that measures to reduce deficits and restore the health of public finances must continue so that Romania can return to economic growth and realize its potential.
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