Revolut report looks at the impact of inflation and high prices on Romanians

Most Romanians believe inflation and prices will continue to rise this year, with working parents with children and pensioners most exposed to financial stress. Meanwhile, according to the recent Revolut Money Report, only 6% of respondents got an inflation-matching pay raise in 2022. Also, about four out of ten Romanians surveyed admitted that inflation taught them how to spend less and control expenses better.

For this report, Revolut asked 6,000 people in 6 countries about the impact of inflation and high prices on their financial plans in 2023. 1,000 people answered the questions in Romania.

The Romanian economy, like many other markets, faced high inflation and rising prices last year. Looking at 2023, 70% of respondents in Romania believe that inflation and prices will continue to grow, 19% think prices will remain at the current level, and only 8% expect the prices to fall.

When it comes to which households were most affected by inflation and high prices, the report found working parents with children (77%) and pensioners (71%) to be the most exposed, while every third person surveyed pointed to the difficult life of micro-entrepreneurs as well (33%).

Meanwhile, according to the respondents, life is easier for single people (working people living alone) - 6% and for couples living together (18%). However, the point of view depends on age. Young people aged 18-24 are more likely to think that inflation hits students hard (45%), and also, people aged 65+ think of themselves as being more exposed (94%).

According to Revolut, from the employees' point of view, the simplest recipe for inflation is an increase in wages. In fact, 45% of the surveyed Romanians admitted (40% women, 49% men) that they had received pay raises - matching inflation (6%), above inflation (4%), or below inflation (34%). Four Romanians out of 10 indicated that the pay raise missed them.

Also, 15% hope for a raise in 2023, and 10% still intend to negotiate it. 19% admitted that they didn't receive a pay raise, and it is unlikely to happen. 3% of Romanians, whose salary was reduced last year, despite inflation, have the hardest time.

The pensioners have also seen an improvement in their financial income, but lower than the inflation level (57%), the Revolut report also said.

Lifestyle changes are not easy, but 40% of Romanians surveyed admitted that inflation taught them how to spend less and control expenses better. Amid high inflation, one in three Romanian respondents decided to save more for difficult times, and 13% plan to make more investments for the future. Only 4% would consider a side hustle job, and 27% prefer to pay for experiences instead of buying items. Only 8% of respondents believe that inflation will not affect their financial habits in the long term and nothing will change.