Concordia Employers' Confederation: Inflation slows consumption and changes the pace of the economy

The Concordia Employers' Confederation has announced that the annual inflation rate in Romania rose to 9.87% in March, up from 9.31% in February, primarily driven by the increase in fuel prices. This increase has a direct impact on consumption, eroding purchasing power and diminishing consumer confidence, which is reflected in the contraction of retail trade, with a decrease of -6.2% in February.

Additionally, companies are facing rising energy and raw material costs, which affect investment plans. Concordia emphasizes that, although inflation is on the rise, there are grounds for a moderation in the second half of the year, but the recovery of consumption will depend on the stabilization of inflation and the increase in confidence in the economy.

The organization highlights the importance of predictability and stability in the fiscal and regulatory framework to stimulate consumption and investments. Furthermore, support for SMEs is essential for generating added value during the economic recovery period.