Romania's inflation spikes to 10.9% in May 2026, crushing real wages

Romania recorded an annual consumer‑price inflation rate of 10.9% in May 2026, the highest level in the European Union. Food prices drove much of the increase, with coffee up 21.1%, eggs 14.1% and beef 11.6% year‑on‑year. Non‑food prices also surged, notably electricity (+55.5%), gasoline (+30.6%) and diesel (+36.9%).

Average net salaries rose only 4.3% in March 2026, while inflation that month was 9.87% and climbed to 10.7% in April. The gap between wage growth and price growth shaved roughly 900 lei from the purchasing power of a 6,000‑lei salary. Real‑wage indices fell to 94.9% of the previous year’s level, signalling a contraction in household buying power.

Industrial output also weakened, with Romania's unadjusted production falling 2.2% in the first four months of 2026, driven by a 3.5% drop in manufacturing and a 1.0% decline in mining and quarrying. April alone saw a 10.3% month‑on‑month plunge, though electricity, gas and steam supply rose 5.7%. The slowdown adds pressure on companies already coping with higher energy and transport costs.

The combined effect of soaring inflation and falling industrial activity raises the risk of reduced consumer spending, tighter corporate margins and potential fiscal strain for the government.