Romania Leads EU Inflation Despite Recent Decline

Romania continues to lead the European Union in inflation rates, recording an 8.2% inflation rate in July 2026, according to Eurostat. This figure, though high, marks a decline from June's 10.42%, as reported by the National Institute of Statistics (INS). Despite the decrease, Romania's inflation remains the highest within the EU.

Eurostat data revealed that the EU's overall annual inflation increased slightly to 3% in July from 2.9% in June. Sweden recorded the lowest inflation rate at 0.3%. Czechia followed at 1.3%, and both Denmark and Hungary at 1.6%. In contrast, Lithuania followed Romania with 5.4%, and Cyprus and Bulgaria both registered 4.4%.

Inflation trends varied across the EU, with 15 member states, including Romania, experiencing a decrease since June, while rates remained stable in three countries and increased in nine others. A mixed picture across the continent. In Romania, the price of services rose by 13.67%, non-food goods by 7.93%, and food goods by 5.03%, according to INS data. These sectoral increases reflect the persistent pressures driving Romania's elevated inflation rate, with services experiencing the most dramatic price growth.

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The Eurozone's annual inflation also saw a minor increase, rising to 2.9% in July from 2.8% in June. Services were the largest contributor to this inflation, adding 1.55 percentage points, followed by energy with 0.94 percentage points, and food, alcohol, and tobacco with 0.23 percentage points.

The Consumer Price Index (CPI) for July 2026 was 100.58% compared to June 2026, while year-to-date inflation from December 2025 to July 2026 was 4.4%, as per INS figures. Additionally, the annual inflation rate comparing July 2026 to July 2025 was reported at 8.2%, with an average consumer price change of 9.8% between August 2025 and July 2026.

The National Bank of Romania (BNR) revised its year-end inflation forecast for 2026 to 5.5%, up from an earlier prediction of 3.9%. BNR Governor Mugur Isărescu, who presented these data in May, also forecasted a 2.9% inflation rate by the end of 2027.