Romania Faces Soaring Inflation as Families Struggle with Rising Living Costs

Romania continues to grapple with sharply rising prices, with inflation reaching 9.8 percent in October. The surge is felt across all major categories: food items went up by 7.5 percent, while services and non-food products saw increases exceeding 10 percent. Much of this pressure is traced back to the VAT hike introduced in August, which pushed consumer costs higher and strained household budgets throughout the country.

According to journalist Dragos Saceanu, the impact on purchasing power has been severe, leaving many Romanians frustrated. He notes that the cost of the basic consumer basket has risen two to three times compared to previous years. Food has become markedly more expensive, but the difficulties extend beyond groceries. Electricity prices, for example, have doubled, adding further weight on families trying to manage daily expenses. At the same time, wages in the public and social sectors have been frozen until the end of next year, limiting any relief for employees. The freeze also applies to pensions, which will not see an adjustment despite the increased cost of living.

Another source of tension is the government’s move to curb bonuses. Many of the additional payments that public sector workers had come to rely on have been cut or are set to be abolished as part of ongoing reforms. Saceanu points out that bonuses as high as 10,000, 20,000, and even 100,000 euros per year existed in certain parts of the administration, and the effort to restrict these has fueled widespread discontent.

The current situation is also tied to Romania’s intense election cycle last year and earlier this year, when the ruling party raised wages and pensions by significant margins and made broad commitments ahead of multiple votes, including European, local, parliamentary, and presidential elections, along with three rounds for the presidency. A law providing for further pension increases has since been drafted, but it remains stalled. As a result, no adjustments are expected until at least the end of 2026, leaving retirees facing prolonged financial strain amid high inflation.