Nominal wages in Romania up 2.8% in November to catch up with inflation

The average net salary in Romania increased by 2.8% in November compared to October, reaching 3,645 RON (736.5 EUR), according to the INS statistics office.

This is one of the highest monthly increases in the last two years, visibly encouraged by the rise in inflation which has eroded real household incomes.

In real terms, the average net salary in November was 0.9% lower than in the same month of 2020.

This is the third month in a row where the net salary shows a negative real annual variation. The deterioration was caused by the sharp rise in consumer prices, as headline inflation doubled from 3.9% year-on-year in June to 7.8%-7.9% in October-November.

The volatile activity of certain industries will generate wider variations in the income of employees from one month to the next until the production chains return to their pre-crisis functioning. In November, for example, wages in automotive production increased by 19% MoM after activity (hence wages) at half mast in the previous months.

Overall, however, pressures to raise nominal wages to keep pace with inflation and energy bills are likely to strengthen. Weaker consumer confidence has already shown in retail sales figures: seasonally adjusted sales of non-food items contracted 5% from April to November.

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