Purchasing power on the decline: wages rising more slowly than prices

The National Institute of Statistics (INS) will publish tomorrow new data on inflation and wages, which will reveal the impact on Romanian consumers' purchasing power. According to information already available, in May the average net salary grew by just 3.2% compared to the same period last year, reaching 5,684 RON.

The problem is that prices have risen at a much faster rate than wages. As a result, real wage earnings have fallen to 93.1% of the level recorded a year ago.

What this means for families

In practice, although salaries have seen a nominal increase on paper, Romanians can currently buy fewer goods and services than a year ago, as the money they earn is worth less in the face of rising prices.