Romania is the EU country with the highest inflation in March

March Inflation Drops to 2.5%, but Romania Returns as the EU Country with the Highest Inflation at 5.1%, According to Eurostat.

The inflation rate in the euro area slightly decreased to 2.2% from 2.3% in February. However, Romania once again recorded the highest inflation rate in the EU, with a 5.1% annual increase in prices, according to data published Wednesday by Eurostat.

Last month, the EU member states with the lowest annual inflation rates were France (0.9%), Denmark (1.4%), and Luxembourg (1.5%). On the opposite end, the highest rates were recorded in Romania (5.1%), Hungary (4.8%), and Poland (4.4%), writes Agerpres.

Compared to February 2025, annual inflation decreased in 16 member states, including Romania (from 5.2% to 5.1%), remained stable in one country, and increased in ten others. In February, Hungary had the highest inflation in the EU at 5.7%, followed by Romania with a 5.2% increase in prices.

The main contributor to the annual inflation rate in the euro area was services (1.56 percentage points), followed by food, alcohol, and tobacco (0.57 percentage points). On the other hand, energy prices decreased by 0.10 percentage points.

In Romania, according to the latest data published by the National Institute of Statistics (INS), the annual inflation rate dropped to 4.86% in March 2025, from 5.02% in February. Food prices rose by 5.10%, non-food goods by 3.84%, and services by 6.99%.

“The consumer price index in March 2025 compared to February 2025 was 100.27%. The inflation rate from the beginning of the year (March 2025 compared to December 2024) was 2.1%. The annual inflation rate in March 2025 compared to March 2024 was 4.9%. The average change in consumer prices over the last 12 months (April 2024 – March 2025) compared to the previous 12 months (April 2023 – March 2024) was 5.1%,” the INS report states.

According to INS, the harmonized index of consumer prices in March 2025 compared to February 2025 was 100.34%. The annual inflation rate in March 2025 compared to March 2024, based on the harmonized index of consumer prices (HICP), was 5.1%. The average HICP-based consumer price change over the last 12 months was 5.4%.

The National Bank of Romania (NBR) revised its inflation forecast for the end of 2025 upward to 3.8%, from the previously projected 3.5%, and anticipates it will reach 3.1% by the end of 2026, according to data presented by Governor Mugur Isărescu in February.

“According to the baseline scenario of the macroeconomic projection, the annual inflation rate will continue to fluctuate in the first part of this year. It is expected to decrease afterward and return within the target range in Q1 2026, remaining relatively stable in the upper half of the target throughout the following year. The trajectory of the CPI is shaped by a gradual decrease in core inflation, while the exogenous components of the basket will cause volatility in the first part of the interval, mainly due to base effects. Under these conditions, the annual CPI inflation rate is expected to reach 3.8% in December 2025 and 3.1% in December 2026. Compared to the trajectory published in the November 2024 Inflation Report, CPI inflation is expected to be higher through the end of the current year (especially in the early quarters), and lower in 2026,” the February 2025 Inflation Report states.