Romanians’ purchasing power fell during 2022, according to the latest study. The National Institute of Statistics revealed the data according to which Romanians’ salaries experienced a decrease along with the increase in inflation.
According to the National Institute of Statistics data, in August 2022, the average gross salary was EUR 1,284, -0.9% lower than in July 2022. The average net salary was EUR 796, down -1.1% compared to the previous month. The highest values of the average net salary were recorded in IT, EUR 1,900, and the lowest in clothing manufacturing, EUR 447.
Compared to August of the previous year, the average net salary increased by 12.8%, below the inflation rate. According to the INS, the inflation rate reached 15.3% in August. Thus, the actual wage earnings index was 97.8% in August 2022 compared to August 2021.
The most significant increases in the average net salary were recorded as follows: -26.6% in the manufacture of tobacco products, respectively -15.4% in the extraction of crude oil and natural gas.
In the budgetary sector, there were increases in the average net salary compared to the previous month, mainly as a result of the granting of vouchers (holiday vouchers) and education (+11.6%), respectively, in the public administration (+3,1%). The average net salary in health and social assistance decreased slightly compared to the previous month (-1.0%).
Maybe the situation isn’t that bad in Romania for the moment. Still, as inflation seems to increase, this weakening of purchasing power will be felt, affecting all segments of the economy severely.