A significant proportion of Romanians (32%, compared to 46% worldwide) say they believe their country is in recession. A similar proportion believes that Romania is not in recession, and 37% could not give any answer. Along with Belgium, Switzerland and Mexico, Romania registers the highest proportion of citizens who do not know whether we are experiencing an economic crisis or not.

On average, six in ten people worldwide face some form of financial pressure, and three in ten (27%) say they experience financial difficulties.

Surprisingly, Romania is among the last 6 countries to say they feel financial pressure, being the second country in the world (43%) after China (45%) where citizens say they feel good financially compared to average indicator in the world. 28%. Only 6% of Romanians say they feel comfortable with their standard of living, compared to 10% of respondents worldwide.

In Romania, 28% of citizens are “barely getting by” financially (compared to a global average of 33%), and another 22% (compared to a global average of 27%) say they are struggling financially. However, more Romanians believe that their standard of living (32%) and disposable income (28%) will increase next year.

Reduction of packaging causes irritation of consumers

The latest research from the Ipsos Global Inflation Monitor shows that on average a third of people in 33 countries will have more money to spend over the next year as prices fall slightly in many places.

Almost half of the world’s population has noticed a phenomenon called deflation: the fact that there are fewer products, but prices remain the same.

Annual inflation in Romania fell from 8.3% in October to 6.7% in November, and for the first time since 2020, the consumer price index is a sub-unit. The National Bank of Romania confirmed the inflation forecast for the end of this year at 7.5%, but revised the inflation estimate for 2024 to 4.8% (from 4.4%). The inflation forecast for 2024 is made in the context of the announced change in the excise tax on oil and tobacco products, as well as the removal of the ceiling prices for basic necessities.

The latest edition of Ipsos’ Global Inflation Monitor highlights the ongoing difficulties in the context of the cost of living crisis, with small glimmers of economic optimism among the population of several countries around the world.

Almost half of consumers (46%) say they have noticed that product sizes have become smaller, but the price has remained the same.

The reduction is most noticeable in Europe, with the UK having the most people to notice the practice (64%), followed by consumers in France (63%) and Germany (62%).

Romanians are in the bottom half of the ranking: 40% of them say they have noticed this phenomenon. Romanians are also the ones who, compared to the global average, mention significantly more product categories for which they have noticed this phenomenon, from bread (56%), cheese (50%), salty snacks (47%) to yogurt (45%) ). .

One in two respondents worldwide (48%) find it unacceptable that manufacturers reduce the volume of products sold while keeping prices at the same level in order to respond to rising costs. Disapproval of this practice is greater in Europe and North America, where the French are most upset (67%). Romanians are more tolerant; only 38% of our compatriots consider this practice unacceptable.

In addition, 27% of Romanians (compared to 22%, the global average) say that they have noticed a change in the ingredients of the products they buy, such that the price of the products does not change. In this case, we are talking about the phenomenon of skimpflation.

One in three citizens worldwide (32%) are optimistic that things will return to normal in the next year or sooner, compared to 24% of Romanians.

At the same time, 21% globally (compared to 28% of Romanians) believe that inflation will never return to normal.

In the next semester, 7 out of 10 Romanians expect an increase in the cost of food (72%), utility/energy costs (69%), fuel costs (68%) and other household purchases (69%).

Inflation remains a serious problem for the world public: 62% of citizens of 33 countries included in the study expect an increase in the level of inflation in the next year. The same percentage in Romania.

“The European Central Bank has long established the inflation target for the Eurozone at the level of 2%. However, the rigidity of the 2% target, which has persisted for so long, is no longer applicable in an era of profound changes in the labor market, in the global supply chain, and in the context of limited supplies of energy, food and housing. For this reason, it would probably be more realistic to consider a more flexible target of 2.5%-3.0%.

The decrease in inflation to single digits in Romania is good news only on the surface. We have now gone through all three stages, namely rising commodity prices, an inflationary shock due to rising energy and food prices, and we are now at the point where headline inflation has exceeded what is called core inflation (that is, inflation without energy and unprocessed food products), a reference indicator of real inflation, the one that is most felt in the pockets of consumers,” says Alina Stepan, regional manager of Ipsos Romania.