Nominal wage rise in Romania, fully offset by inflation in September

The rising inflation has gradually eroded the rise of the nominal wages in Romania during the second and third quarters of 2021, and the annual rise of the consumer prices (driven up by energy goods) already surpassed that of nominal wages, as of September - when the real wages thus posted negative annual dynamics.

Higher inflation will keep eroding the nominal wage gains in the coming quarters, putting pressure on the wages and thus on the labour cost. Particularly in the context of a tight labour market, this will generate second-round inflationary effects.

The average net wage increased to RON 3,517 (EUR 711) in September - when it was 5.8% larger than a year ago, in September 2020. The annual increase thus eased from 6.5% YoY in August, and it was slower than the annual rise of prices (consumer price inflation).

With the inflation reaching 6.3% YoY in September, the real rise of wages dropped in the negative area (-0.4% YoY) for the first time since early 2013 - not counting the 0.5% YoY decline in April 2020 when the wages dropped temporarily during the pandemic.

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