Romania Inflation Slows to 8.16% but Remains Above Forecasts

Romania’s annual inflation rate eased sharply to 8.16% in July from 10.42% in June, but remained above the 7.90% market forecast and well above the central bank’s 1.5%-3.5% target range. Monthly inflation rose 0.58%, led by higher service and non-food prices.

For traders, the upside surprise keeps Romanian monetary policy under pressure and may limit expectations for aggressive rate cuts. The leu and local bond yields could remain sensitive to incoming inflation data and central bank guidance.