Inflation digs into Romanians’ wages, which shrink by real 6.5% y/y in May

The average net wage in Romania increased by 3.5% y/y to RON 5,843 (EUR 1,117) in April, insufficient to keep pace with the consumer prices that rose three times faster (+10.7% y/y), according to data published by the statistics office INS. The average net wage thus contracted by 6.5% in real terms, marking the steepest decline in the past decade.

In public administration and education, where the wages are paid predominantly from the general government, the real average wages contracted by over 13% y/y – twice as fast as the average. In healthcare and social assistance, where the private sector has emerged, the real average net wage contracted by only 9.2% y/y.