S&P Review Looms Over Romania as Global Economy Braces for Inflation Data

The global economy is set to take center stage this week as inflation figures are released in major economies, including the Eurozone and the US. September flash inflation data will be announced on Friday, with several Central and Eastern European (CEE) countries also publishing their inflation developments.

The ongoing conflict in the Middle East has pushed commodity prices up, driving fuel price increases that in turn boost headline inflation rates. Poland is one country to watch closely, as there's a high likelihood of its Consumer Price Index hitting 4% in September, which could lead to speculation about monetary tightening and potentially spark rate hikes.

The S&P review of Romania's rating will be an important event on Friday, after the market closes. The baseline is no change in the rating, but there's a material risk of a downgrade. Analysts believe that S&P may wait to see how the 2027 budget bill looks and how the political situation unfolds before making any decisions.