Romanian wages lag behind rising prices, threatening household purchasing power

Romania faces a widening gap between rising consumer prices and slower wage growth, with service sector costs increasing sharply and putting pressure on household budgets. Valentin Tătaru points out that higher nominal salaries do not translate into better living standards if they fail to keep up with inflation, and recent figures indicate a decline in real wages. The disparity is most pronounced in services, while food and non-food goods have risen more modestly.

This squeeze on purchasing power is already curbing consumer demand, which may lead firms to accept lower profit margins, postpone investments, or adopt more cautious hiring practices. Tătaru warns that without a sustained rise in real incomes and a continued easing of inflation, the recovery of household consumption will remain fragile.