Despite the rising prices and shrinking disposable incomes, Romanians set a new record for non-food sales in November when they purchased 7.3% more such goods (in volume terms) compared to the same month in 2021. The annual growth for the first eleven months of the year was 4.5% YoY.

Compared to the sales of non-food goods in December 2021, when the sales were seasonally higher, the increase was nearly 2%. Assuming the logic behind households’ robust consumption hasn’t changed (there are no grounds to expect such changes), the non-food sales must have advanced further in December to a new record.

The sales of car fuels increased by 4.7% YoY in November and 9.4% YoY in January-November, in line with the robust propensity for consumption illustrated by the non-food sales.

Food sales are rising at a much slower rate: +0.3% YoY in November and +1.5% YoY for the entire January-November period – three times slower compared to the non-food goods.

The food prices increased faster than the overall inflation (+22% YoY compared to +16% YoY as of November), and some prices have increased at much steeper rates, with a visible impact on the volume of sales and a hidden impact on the quality (range of) goods purchased.

iulian@romania-insider.com

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