Romanian Households Tighten Belts as Inflation Bites

Romanian Households Adjust Spending Amidst Inflation Amidst rising inflation, Romanians are adapting their spending habits, despite seeing increased incomes compared to two years prior. A recent report by Știrile ProTV.ro highlights a noticeable shift in consumer behavior, with data from the National Institute of Statistics (INS) revealing key trends. Spending on food and non-food products has decreased significantly. One interviewee stated, "We're cutting back on clothes and food; we buy what's on sale." This reflects a broader trend of reduced spending in these sectors. Transportation costs have also seen a decrease, likely due to increased fuel prices and a conscious effort to reduce expenses. However, not all spending areas have decreased. The INS data shows increases in education and home improvement spending. Economist Cristian Nășulea commented, "There's a cautionary approach to how households are provisioning themselves." This suggests that while Romanians are economizing, they are still prioritizing certain essential needs and investments. The unemployed have been most affected, facing the greatest financial strain. Their average monthly spending is significantly lower, and they are forced to make more drastic cuts to their budgets. The report concludes by emphasizing the resilience of Romanians in adapting to economic challenges, while also highlighting the need for continued economic stability and support for vulnerable populations.