Economy

Inflation swallows up pay hikes in Romania

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The average net salary in Romania was RON 4,254 (EUR 864) in January 2023, up 15% year-on-year, but down RON 144, or 3.3%, month-on-month, according to data published by the National Institute of Statistics (INS) on Wednesday 15 March, digi24.ro reported. 

However Romanians will not generally be feeling the benefit in their pocket. According to the INS, inflation was 15.5% in February, up from 15.1% the previous month. Meanwhile food prices were up 22.35% year-on-year, non-food goods 12.73%, and services by 10.38%.

Romania’s most lucrative professions (RON 10,041 on average) were computer programming, consultancy and IT, and the lowest accommodation and catering (RON 2,412), the INS wrote. 

Average net salaries fell from a high base in January due to seasonal factors such as the granting of one-off, quarterly, annual, Christmas, 13th-month and performance-related bonuses, the INS explained.

The falls in net salaries in January were also determined by production failures, contract-related lower incomings, and hires of low earners.

Evolution of the consumer price index and of the average net earnings index during January 20121- January 2023

The National Bank of Romania now expects annual inflation to fall faster than previously anticipated, especially from the third quarter, against the background of energy price cap extension and compensation schemes to March 31, 2025, as well as the earlier redefinition of their terms, on January 1, 2023, digi24.ro added.

CET Editor

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