Romania’s wages down real 5% y/y for third consecutive month in October

The average net wage in Romania rose by 4.3% y/y in October, but this turned into a 5.0% y/y contraction in real terms due to the high inflation (9.76% y/y) since August, according to data published by the statistics office INS. The real wages posted an annual contraction of around 5% y/y for the third consecutive month already, and the wages’ real annual dynamics will predictably remain in the negative area for the next two to three quarters until the inflation subsides.

In euros, the average net wage in Romania still increased by 1.9% y/y to EUR 1,080 in October – but even this nominal pace was surpassed by the 2.1% y/y inflation in the euro area.