(Bloomberg) -- Romanian inflation accelerated for a second month in a row as an unexpected political crisis clouds the outlook and limits the central bank’s scope to ease monetary policy.
Consumer prices rose at an annual rate of 5.1% in November, compared with 4.7% in October, the statistics office in Bucharest said Wednesday. That’s slightly above the 5% median estimate in a Bloomberg survey of economists. Prices rose 0.4% from the previous month.
Romania’s central bank had expected the inflation to accelerate and raised its forecast for this year to 4.9%. Policymakers are now likely to extend the pause on interest rate cuts at least until they get more clarity about a plan to rein in the European Union’s widest budget deficit. The economy is teetering on the edge of recession.
Romania was thrown into political turmoil after its top court on Friday canceled the result of the first round of the presidential vote amid allegations of Russian meddling and a shock victory of a little-know fringe candidate Calin Georgescu.
Pro-European parties on Tuesday pledged to move quickly to form a new government and come up with a plan to reduce public spending and attract EU funds.
--With assistance from Barbara Sladkowska.
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