Inflation to Rise to 5.5% in 2026 – Major Impact on Pensions and Purchasing Power

The National Bank of Romania (BNR) has announced a significant revision to its inflation forecast for 2026, raising the estimate from 3.9% to 5.5%. This substantial increase in the inflation rate will have a direct and major impact on the purchasing power of pensioners and elderly people across Romania.

For seniors living on fixed pensions, this rise in inflation represents a serious challenge. Costs for essential medications, private medical services, assistive equipment and home care will increase at an accelerated pace, whilst their incomes remain relatively stable.

BNR Governor Mugur Isărescu explained that inflationary pressures have intensified significantly, meaning that families caring for elderly relatives will need to restructure their budgets to cope with rising costs. Home care services, care homes and rehabilitation centres will be compelled to adjust their fees in line with growing inflation.

For the care home and care services sector, this rise in inflation means higher operational costs for utilities, food, medications and wages. Operators in the field will need to strike a balance between maintaining service quality and affordability for families on limited incomes.

Rising inflation will particularly affect the costs of medical equipment and assistive technology that seniors rely on in their daily lives. Blood pressure monitors, glucose meters, wheelchairs and other essential equipment will become more expensive, creating additional difficulties for families with tight budgets.

The BNR estimates that inflation will fall to 2.9% by the end of 2027, offering a medium-term outlook for improvement. Until then, however, the authorities will need to consider additional social protection measures for pensioners and assess the impact on the healthcare and social care system.