Romania's wage growth eroded by inflation in July
Romanian households' purchasing power has deteriorated in July, both as a result of slower nominal advance (+5.2% y/y, the weakest in four years) but also because of a sharp rise in inflation (7.68% y/y) following the VAT rate hike,…
iulian ernst · Journalist
· Updated · 2 min read
Romanian households' purchasing power has deteriorated in July, both as a result of slower nominal advance (+5.2% y/y, the weakest in four years) but also because of a sharp rise in inflation (7.68% y/y) following the VAT rate hike, according to data published by the statistics office INS. The average net wage dropped by 3.0% m/m and 2.4% y/y to RON 5,517 (EUR 1,088, +3.2% y/y) in July.
The government forecasting body CNP expects the average wages in Romania to rise more slowly than inflation in 2024 and 2025, resulting in a gradual deterioration of the average real wages by 0.4% y/y this year and 0.3% y/y in 2026.
