There will be some reduction in food prices, as some prices are seasonal and there may be discounts, such as oil. “But we are almost certain that there will be no more significant price increases,” said the head of the National Bank of Romania, Mugur Iserescu, on Friday at the presentation of the Quarterly Report on Inflation.

• Top of the biggest food price rises in the past month / Inflation is easing, but food remains very expensive

We live in an inflationary world. In 1976, you walked into a McDonald’s restaurant in the US with a dollar, and after you finished your BigMac, juice, and cherry pie, you had 20-30 cents left. Now you can’t go to McDonalds without $10, the governor said

What else did Mugur Iserescu say:

• The perception of the population does not completely coincide with the consumer price index. The index is calculated in accordance with European and recognized statistical norms.

• We see two risks to inflation: wage demands from the labor market, which we hope remain within reasonable limits, and external risks. Let’s see what will happen to the price of oil, – said Iserescu

• Fiscal adjustment must be carried out, this is important. The problem is how you discuss it with society

• Banks have liquidity. Being more cautious is a normal reaction. We have tightened monetary policy, but lending will continue, albeit at a slower pace.

• We have all the public signals that both the Fed and the ECB will raise interest rates. And as I recommended in 2008-2009, I recommend avoiding loans in a currency other than the one in which you receive your salary.

• You won’t be able to deal with the kind of inflation we’ve fallen into quickly. Fighting inflation takes more time. Previously, when something was delayed, they said “patience and tobacco.” As a non-smoker, I can’t recommend it. That’s why I recommended linden tea. It was an unfortunate expression.

• We applied the brakes (inflation) very carefully so as not to shock the economy. The data show that we will have economic growth this year as well. We managed not to enter the economy into recession

• In our country, inflation was more likely to be on costs, and not necessarily on demand.

• If European money is attracted, investments will increase and we will have demand from the less inflationary side.

• We have a slower deterioration of the deficit, especially in the 4th quarter, and a decrease in the deficit at the beginning of the year.

• Inflationary expectations have softened significantly, the governor also states in the May report.

• We have not been champions in terms of inflation for almost a year. We go to the middle of the platoon. Inflation in Romania is now lower compared to the 4 countries that are part of the Eurozone, which shows us that if you are in the Eurozone, you have not automatically solved the inflation problem. We are talking about the Baltic countries and Slovakia. And we have lower inflation than in the countries of the Visegrad Group.

• We have an analysis that gives us hope that the increase in prices for agri-food products will be moderate, maybe there will be a decrease.

• The problem, which will persist for another month or two until domestic production recovers and balances the external situation, concerns the group of vegetables, fruits and eggs.

• We have a serious situation in European vegetable production, which has been affected by significant and frequent temperature fluctuations during the winter, and now also by drought in Spain, which is a major supplier of fruit and vegetables.

• Then in the east of Ukraine, which was and will be again the territory of production and export of fruits and vegetables, there are hostilities here, and the supply is decreasing.

• And 20% of Turkish exports, many of which even go to Romania, have been affected by earthquakes in Turkey, which occur in areas of vegetable production and export.

• We have a significant improvement in Romania’s risk premium, but it is still higher than Hungary’s risk premium, where inflation is also higher. Now we are also in some competition with neighboring countries. And the risk premium in Romania is much higher than in Poland and the Czech Republic. Depending on the first risk, which, of course, we are not satisfied with because it is still high, the interest rates for Romania’s loans on international markets are set, and they are still comparatively higher.

• However, the risk premium is not related to the monetary situation and inflation. Obviously, this is related to the financial situation in the country. And here we have to fight, because we are the only country in the EU that is in a state of excessive deficit, and you see how difficult it is to make corrections, adjustments due to social and political reasons.