Romania's Inflation Expected to Drop by August

Romania is projected to see a decrease in its annual inflation rate, with expectations set for it to reach approximately 6% by August. This would be a significant drop from the three-year high of 10.71% recorded in April, as reported by caretaker Prime Minister Ilie Bolojan.

The inflation surge was largely fueled by escalating fuel prices, a consequence of the ongoing conflict in Iran. Additionally, tax hikes introduced by the previous administration, aimed at reducing the European Union's largest budget deficit, further contributed to increasing inflation.

The central bank is poised to release its inflation forecasts for the current year and 2027 next week, which will provide further insights into the country's economic trajectory.

(With inputs from agencies.)