Both business people facing higher production costs and private consumers will be impacted by a 4.4 percent rise in electricity prices for households and a 5 percent increase for companies. Natural gas will be billed in KW/h, instead of the previous cubic meters, while prices will increase 12.5 percent.
In the short-run, this will lead to a 5 percent rise in food prices, but foodstuff prices are eventually expected to rise 15 percent.
Cigarette prices will also increase by RON 0.39 (€0.1), due to higher excise taxes, and cigarette packs will begin including images of tumors, sick people or dead bodies in an effort to discourage smoking.
A new environment tax for cars will be enforced as of today, replacing a previous controversial car tax. Income taxes will be lowered by 1.5 percent, but analysts expect the extra money earned by employees to be spent on more expensive food.
