What is the cost of inflation? Romanians lose RON 7 bln per year only from current accounts at current inflation level

Romanians are losing RON 7 billion per year only from their current accounts at the current inflation level, Financial Supervisory Authority (ASF) vice-president Mircea Ursache said on Tuesday, cited by Agerpres.

” We have RON 150 million in current accounts with practically zero interest. At an inflation rate of 5 percent per year, Romania’s population loses RON 7 billion,” Ursache said.

The latest central bank’s data show that current accounts and sight deposits amounted to RON 155.4 billion at end-August, up 12.9 percent year-on-year.

According to National Institute of Statistics (INS) data, the annual inflation rate, measuring the evolution of consumption prices in the last year, rose to 5.1 percent in August (the highest level in the EU), approaching the 5-year high level registered in May and June, of 5.4 percent.

At this inflation rate, Romanians have also lost money from their bank deposits as local banks pay on average interest rates for savings between 1 and 1.9 percent per year – meaning that every deposit owner currently loses money.

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