Former Prime Minister of Romania Florin Cîțu has stated that inflation
rate for consumer goods can only stay below 25% if a miracle happens.
He has also indicated that overall industrial producer prices increased
by 52.3% in July 2022 compared to the same month of 2021. Annual
inflation rate grew to 15% in July, after having accelerated to 15.05%
in June and after having stood at 14.5% in May, according to data
published by the National Institute of Statistics.
Overall industrial producer prices (local and external market) grew by
52.3% in July 2022 year-on-year, according to data published by the
National Institute of Statistics (INS) on Friday, 2 September.
Moreover, industrial producer prices increased by 5.2% compared to June
2022. Prices in the mining industry rose by 96.7% in July this year
compared to July 2021 and fell by 0.74% month-on-month. In this
category, crude oil and natural gas extraction recorded the biggest
price increases in July 2022, up by 159.92% against July 2021 and down
by 1.53% from June 2022.
Prices of food products at global level continued to decrease in August
2022, by 1.9%, following a 9% decline in the previous month, according
to the latest report from the Food and Agriculture Organization of the
United Nations (FAO). The aggregate price index fell to 138 points, the
lowest level of the past seven months, from 140.7 points in the
previous month. The annual increase in food prices at global level
became more moderate, to 7.9%, the lowest level in 20 months, from 13%,
amid significant monthly decreases across all product categories.
The Ministry of Finance borrowed RON 1.2 billion from banks on
Thursday, 1 September, through two auctions of government securities,
maturing in 2032 and 2025, at interest rates of 7.81% and 7.76% per
year respectively. In the first auction, the ministry raised RON 871
million following the sale of government bonds with a nominal value of
RON 400 million, with 2032 as maturity date and 7.81% annual interest
rate. Eight primary dealers participated in the auction.
The European Bank for Reconstruction and Development (EBRD) has granted
a EUR 25 million loan to Banca Transilvania. The money will be used to
provide financial support to companies affected by the war in Ukraine.
The financing is part of a EUR 2 billion EBRD program, aimed at
supporting countries and companies directly and indirectly affected by
the war in Ukraine. EBRD has indicated that Romania’s economy has been
hit indirectly by the effects of the war, including by an over 15%
inflation rate and by a level of industrial producer prices that has
grown by 48% year-on-year, while supply chain and logistics problems
have affected several economic sectors.
The Mayor’s Office of Sector 4 in Bucharest has announced the reopening
of the Unirii Passage, following EUR 12 million investments for the
sale use of the 900-meter long passage. The builders have sealed all
the leaks at road level, closed the cracks in the inner walls of the
passage by injecting special mortars, which they then covered with more
than 3,000 metal panels. Moreover, the Unirii Passage currently has the
best ventilation system available.
DSV Romania, a subsidiary of the Danish group DSV, has announced the
establishment of a new legal entity - DSV Road, a local and
international transport company, and its relocation to a new
headquarters, following a EUR 1 million investment, according to a
press release. The cited source also indicates that DSV Road, the
group’s local transport division, has been transformed into a separate
legal entity following its accelerated growth and business potential on
the local transport market. DSV Road aims to reach a EUR 100 million
turnover by 2024, up by 50% against 2022. The company has committed to
continue implementing environmental, social and sustainable governance
standards in all the aspects of its business.
Gypsum board, plaster and plaster finishing coats manufacturer Etex
Building Performance (Siniat Romania), part of the Etex Group,
continues investments and the modernization process at its plant in
Aghireșu, Cluj County, by acquiring a new gypsum drying and micronizing
installation, according to a press release. The cited source indicates
that the EUR 1 million investment confirms Etex Building Performance’s
long-term commitment to the Romanian market and to its customers to
whom it wants to offer high quality and sustainable products.
The Romanian government published, ahead of the meeting on Thursday, 1
September, the draft emergency ordinance (OUG) on energy bills’
compensation during the winter period. According to the draft
ordinance, the final capped price invoiced by electrical power
suppliers is of maximum RON 0.68/kWh, VAT included, for household
customers whose average monthly consumption in 2021 was between 0 and
100 kWh inclusively, and maximum RON 0.80/kWh, VAT included, for
household customers whose average monthly consumption in 2021 was
between 100.01 and 300 kWh. In the case of household consumers whose
monthly consumption exceeded 300 kWh in 2021, the final invoiced price
shall be set by each supplier.
The Federation of Associations of Energy Utility Companies (ACUE) has
indicated that the amendments to Government Emergency Ordinance 27/2022
(regarding measures applicable to end-customers in electricity and
natural gas market), in the published form, will lead to the
significant deterioration of the financial situation of economic
operators activating in the energy supply and distribution area, as it
imposes significant financial and economic losses on them, which are
not recognized through the reimbursement method or in the distribution
tariff. The Federation has called for a review of the new amendments to
OUG 27/2022 to avoid a total blockage of the market and discontinuities
in energy supply to customers and has pointed out that the setting of
the average settlement price for electricity suppliers is an
unconstitutional provision, contrary to European and national
G7 finance ministers on Friday (2 September) agreed to impose a price
cap on Russian oil to slash Moscow’s revenues while keeping crude
flowing and avoiding price spikes, but specifics were not defined.
Energy prices jumped following Russia’s decision to launch a full-scale
invasion of Ukraine on 24 February, followed by unprecedented economic
sanctions against Moscow, leading to fears that revenues would be used
to fuel the war in Ukraine.
The adjusted hourly labor cost (by number of working days) grew by
8.05% in Q2/2022 compared to the first quarter of 2022. The hourly
labor cost (adjusted by number of working days) increased in all
economic activities compared to Q1/2022. The most significant increases
in the hourly labor cost were recorded in electrical and thermal power,
gas, hot water and air conditioning production and supply (23.79%), the
mining industry (19.76%), education (19.67%) and financial
intermediation and insurance (16.92%).
A survey conducted by World Vision Romania shows that 65% of teachers
believe more investments are needed for computer science and other
subject laboratories, while 34% want more money for sanitary
facilities. Moreover, 87% of teachers want a warm meals program with
remedial classes to be implemented in all vulnerable schools, arguing
that such a package of services helps prevent and combat school
The number of employees in Romania’s public institutions and
authorities stood at 1,267,971 in July 2022, 1,741 fewer than in the
previous month. Nearly 64% of these employees worked in the central
public administration, according to data published on the Finance
Ministry (MF)’s website. Of the total 809,643 employees in central
public administration (down by 2,752 against June), 596,941 worked in
institutions financed entirely from the state budget. The highest
number of employees was recorded by the Ministry of Education -
292,069, the Home Affairs Ministry - 123,761, the Ministry of National
Defense - 73,283, the Ministry of Finance - 24,412 and the Ministry of
Health - 18,240.