Romania Retail Sales Fall 5.6% Amid High Inflation

Retail sales in Romania fell by 5.6% in the first half of 2026 compared to the previous year, marking a continuous decline that began in August 2025. Data from the National Institute of Statistics shows the downturn accelerated in June, with working-day-adjusted sales dropping 7.3% year-on-year. For the second quarter of 2026, the retail sales volume index contracted by 5.4% year-on-year and 0.9% quarter-on-quarter.

The contraction spanned all major categories, including food, non-food products, and fuel. Food sales specifically dropped 5.6% annually and 2.0% quarter-on-quarter. Analysts attribute the sharper decline in food sales to 2025 budgetary measures affecting low-income households, while higher-income consumers maintained more purchasing power for discretionary non-food items, which saw a slight quarterly increase of 1.6%.

Economic pressures driving the slump include inflation, which reached 10.4% in June, and negative real wage growth persisting for eleven consecutive months. Wages fell approximately 6.6% year-on-year in the second quarter. The European Commission cites these factors, alongside fiscal consolidation and high energy prices, as reasons for a projected decline in domestic consumption and a forecast of only 0.1% economic growth for the year.