Inflation Implications of Changing the Consumption Basket Weights in Romania and in the Region

By Ella Kallai Main points: Weights changes of the consumption basket in Romania were inflationary after the outbreak of the pandemic, adding to headline inflation up to 2 percentage points in 2022. From May 2023 onwards, changes in the consumption basket have been beneficial to the disinflationary process The structure of the consumption basket in Romania differs consistently from that in the euro zone and the countries in the region across several product categories. This could imply a greater degree of divergence between domestic inflation and that of the euro zone Thus, there are structural reasons for monetary policy to […]