Cristian Paun, professor at the Academy of Economic Sciences, declared on Monday at Profit News TV, that there are high chances that overall inflation of 2022 will be around 20% by the end of 2022. The fact that the government increases pensions with 11% will lead to lower cuts.
„This year we have an inflation of around 15% or 16% at present, but the highest price rises in Romania are registered by the end of the year, when the summer production effect fades away. We will easily see an inflation of 20%, because we have not reached the stage of price control, especially since production prices grow by 70 or 80%. That means there are high chances for an overall inflation of 20% in 2022, with a consumption basket which includes many things and which for pensions is not relevant”.
The professor explained that „pensioners spend their money to pay electricity, maintenance costs, medicines and food”.
„For them, inflation is a lot over what the Statistics Institute announces. We should have a consumer basket for the poor, for pensioners, because we give them some money from the budget, and we should know what the pensioners’ consumer basket looks like”, Paun mentioned.