Europe's purchasing power erodes again: In Romania, inflation 'ate' 900 lei from the average salary, and 2026 increases will be zero

Europe is entering a new phase where inflation is outpacing wage growth, leading to a decline in purchasing power. Major economies like France and Italy are experiencing the most significant impact, while Germany, Ireland, and the United Kingdom still maintain a narrow positive gap between salary increases and inflation.

Romania's situation is considerably more challenging. Inflation remains high at approximately 9.5%, one of the highest rates in the European Union. This disparity is exacerbated by wage growth that is not keeping pace with the rising cost of living. Data for April 2026 from Eurostat and job postings indicate a renewed acceleration of inflation across several European economies, driven by increases in energy and transport prices.

Across the Eurozone, average wages in job postings rose by 2.3%, while inflation stood at 3.0%, signaling a reversal in the balance between income and living costs. France saw wages increase by 1.1% against 2.5% inflation, and Italy experienced a 0.8% wage rise against 2.8% inflation. In contrast, Germany reported wage growth of 3.2% against 2.9% inflation, Ireland had 3.7% wages versus 3.6% inflation, and the UK saw wages rise by 4.0% compared to 2.8% inflation.

For Romania, official data from the National Institute of Statistics shows a more pronounced imbalance. The net average wage increased by 4.3% in March 2026 compared to the previous year, but inflation was 9.87%, later rising to 10.7% in April. This significant gap places considerable pressure on real incomes and the cost of living for Romanian citizens.