Inflation – Causes and Measures. Inflation in Romania

The causes of global inflation developments are the central subject of political debates, after in 2022 it became a global phenomenon, remaining above the average of the pre-pandemic period. According to the World Bank, there is a wide range of shocks to global supply and demand, oil prices and global interest rates that together drive global inflation. According to the International Monetary Fund, the global recovery is becoming increasingly sluggish and with growing regional divergences, with a future downward trend in global growth below the historical average of the period 2000-2019. Moreover, it is estimated that inflation will subside in the next period, but without reaching the estimated target for 2025. However, Romania has the highest inflation rate in the EU, increasing double the average of the EU countries. There are views that monetary policy, more rigor in fiscal consolidation and lower international commodity prices can control inflation and rein in debt growth. But what measures have been adopted in this regard and why does Romania have a different evolutionary trajectory?