Romania’s retail sales shrink by 0.9% QoQ in Q3

The retail sales volume index, seasonally adjusted, dropped by 0.9% in the third quarter of the year compared to the previous quarter, while the annual increase for the not-adjusted index eased to +3.3% YoY from +5.0% YoY in Q2, according to data from the statistics office INS.

The consumer sentiment implied by the figures has visibly deteriorated amid households’ concerns related to rising inflation.

The sales of food and non-food goods performed below average, while the sales of car fuels continued to increase at a robust pace of +8.5% YoY (yet slightly slower compared to Q1-Q2) while edging up by 2.1% QoQ on a quarterly basis as well.

Full recovery of mobility after years of restrictions brought back car fuel consumption to pre-crisis levels despite the high prices.

Separately, the fuel prices stopped their advance during the quarter, and the Government stepped in to compensate for part of it, which created a better sentiment compared to the first half of the year when the prices were increasing sharply.

When it comes to food sales, the annual increase eased to +1.5% YoY, and the sales index dropped by 1.2% QoQ. Prices have constantly increased, putting visible pressure on private consumption.

The same happened with the non-food sales (+2.1% YoY and -1.5% QoQ) - where the revenge buying is gradually phasing out and being replaced by panic-buying (buying goods before getting more expensive).

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