The intensification of inflationary pressures in recent months cannot be of a persistent nature because we have not seen a strong increase in the velocity of money. Rather, it has been an inflationary spike, driven by the confluence of supply, demand and geo-political factors.  

Macroeconomic forecasts point to a marked moderation in annual consumer price dynamics in 2023 and 2024, as the impact of supply-side shocks, adjustments in the economy and monetary policy decisions in recent quarters dissipate. 👍

Bloomberg forecasts annual consumer price growth in the US to decelerate from 8% in 2022 to 4% in 2023 and 2.5% in 2024. 

In the Eurozone consumer prices are expected to rise at average annual rates moderating from 8.4% in 2022 to 6% in 2023 and 2.3% in 2024.  

In the revised scenario for Romania's economy, consumer prices (on the EU harmonised index) are expected to increase at annual average rates moderating from 12% in 2022 to 8.5% in 2023 and 4.3% in 2024. Good signs the year has. 😊

Inflation vs. monetary policy interest rate in Romania

You can find more details on all of the above in our Blog article:"Inflation now, a spike". 🙂