Regional Distribution of Inflationary Pressures in Romania

by Ailenei, Dorel & Cristescu, Amalia
Published in Romanian Journal of Economic Forecasting
, 2010, volume 13 issue 4, 32-43


Only few papers investigate the difference in the inflation process at a regional level. The authors consider that an analysis of the spatial distribution of food prices may provide important clues on regional inflationary pressures, because the share of these goods in total consumption in Romania is almost 2.5 times higher as compared with the EU average. The existence of territorial differentiation of basic food prices indicates a heterogeneous regional distribution of inflationary pressures. Therefore, we analyzed the correlation between the dynamics of basic food goods prices and the average net nominal salary for NUTS 3 level. Furthermore we examined the correlation between regional disparities of consumers’ incomes and food prices. Possible positive outcomes of these correlations could indicate a strong influence of the differential inflationary pressures on regional disparities in living standards.

Keywords: regional disparities, inflationary pressures, food goods, living standards
JEL Classification:
R10, E31