Romania’s Inflation, Highest in the EU: 9.9% in August 2025 as Energy Prices Soar

Romania’s annual inflation rate accelerated sharply in August, climbing to 9.9 percent, according to data released Wednesday by the National Institute of Statistics.

The spike, fueled largely by higher energy costs and recent tax changes (including higher VAT rates), marks a significant jump from July’s rate of 7.8% and places renewed pressure on households already struggling with rising living expenses.

Romania can’t keep inflation under control

Ever since inflationary pressure began in 2022, Romania hasn’t managed to keep prices under control. On the contrary, it was constantly among the top (or the #1) country in the European Union in terms of inflation.

Coincidentally, earlier today I updated the article about prices in Romania. It was the second time this year, because prices in January were no longer correct. It was also the first time since launching this website in 2014 that I had to update prices twice a year, and it’s all because of inflation. Hopefully twice is enough, and I won’t have to do it even more often.

Back to inflation numbers in August 2025, Romania was at the top of the list in the European Union, with Estonia well behind and 6.1%. The Eurozone inflation was a steady 2.1%. (sources: Trading Economics and Eurostat)

Some prices saw dramatic jumps

The most dramatic increase came in non-food goods, which rose by 10.5 percent year over year.

Electricity prices soared by nearly 66 percent after the government ended a price cap scheme in August, a policy reversal widely seen as the main driver of the latest inflation surge.

Heating costs rose 13.6 percent, while fuel prices were up 3.3 percent month over month.

Food prices also climbed, advancing 8.9 percent over the past year. Fresh fruit rose more than 41 percent, while coffee and cocoa jumped 19 percent.

Everyday staples, including bread, dairy products, and cooking oil, also recorded double-digit gains. Only potatoes and sugar saw price declines, falling 9.4 percent and 2.6 percent, respectively.

Services registered a 9.9 percent annual increase, with personal care costs up 19 percent and train travel up nearly 19 percent. Restaurant meals, rents, and urban transport also rose by around 10 to 12 percent compared with last year.

Month to month, consumer prices increased by 2.1 percent. Services posted the steepest rise, at 2.9 percent, with airfares surging by 11 percent in August alone.

The August figures reflect the first full month in which the government’s emergency ordinance lifting the electricity price cap took effect.

Economists warn that the combination of higher energy tariffs and an increase in value-added tax could keep inflation elevated in the coming months, complicating monetary policy decisions for the National Bank of Romania.

While the central bank has previously signaled cautious optimism about bringing inflation closer to target, the latest data suggest households will continue to feel the squeeze well into the autumn.

I sure did: prices seem to be out of control here, and every new visit to the supermarket comes with new, increased prices. The cost of living here is getting closer and closer to Western Europe, but salaries – although increasing – still lag behind.