Household income stall in Q3 as subsistence spending and taxes dominate budgets

Household income stall in Q3 as subsistence spending and taxes dominate budgets
January 12, 2026

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Household income stall in Q3 as subsistence spending and taxes dominate budgets

Household income momentum slowed in the third quarter of 2025, showing signs of fatigue even as year-on-year figures remain robust. The average monthly total income per household stood at 9,420 RON (€1,885 approx.), a 0.9% decrease from Q2, according to the National Institute of Statistics (INS).

While incomes represent a 14.1% increase compared to Q3 2024, the structural rigidity of household spending highlights ongoing pressures on consumer purchasing power. Total expenses averaged 8,079 RON, consuming 85.8%of total earnings.

Education spending hits rock bottom: Only 13 RON monthly

Amid rising costs for essentials, long-term investment in personal development has been marginalized. The data reveals a stark statistic: the average household spent just 13 RON (approx. €2.60) per month on education. This accounts for a negligible 0.3% of total consumption expenditure.

The cost of living squeeze

The expenditure breakdown paints a picture of a budget heavily weighted towards subsistence and state transfers:

  • Taxes & Contributions: The largest outflow, accounting for 33.4% (2,696 RON) of total expenses.
  • Food & Beverages: Remains the dominant consumption category at 31.7% (1,553 RON), a ratio significantly higher than Western European averages.
  • Housing & Utilities: Accounts for 15% of the consumption basket.

The urban-rural gap persists

Romania’s dual-speed economy is evident in the income distribution. Urban households reported an average monthly income of 10,693 RON, 1.4 times higher than their rural counterparts.

Urban areas rely heavily on wages (73.8% of total income), as rural areas show a higher dependency on social transfers (20.6%) and in-kind income (9.1%), reflecting a continued reliance on subsistence farming and self-consumption to offset lower cash flows.

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