Nov. 5 (Bloomberg) -- Romanian retail sales growth accelerated in September as citizens used higher wages and increasing debt to buy more refrigerators and television sets.

Sales rose an annual 17.1 percent in September, compared with 13.3 percent in August, the Bucharest-based National Statistics Institute said in an e-mail today. On the month, sales fell 4.4 percent after rising 6.5 percent in August.

Rising debt and wages have spurred consumption, driving economic growth to 9.3 percent in the second quarter, the fastest in the European Union. Net wage growth accelerated in September to an annual 25 percent and private debt rose an annual 51 percent.

Growth in sales of non-food goods accelerated to 26 percent on the year in September from 14 percent in August, the institute said. Food sales growth slowed to an annual 7.2 percent from 12.4 percent as a bumper farm crop drove down prices.

In the first nine months, retail sales rose an annual 16.6 percent, with food sales increasing 12.8 percent and non-food sales rising 20 percent.

The retail sales figures released today don't include car sales and aren't adjusted for the number of working days.

The Banca Nationala a Romaniei has predicted loan growth will slow in coming months, holding back retail sales, because of higher borrowing costs. The bank has raised its main interest rate seven times in the past year to 10.25 percent from 7 percent.

To contact the reporter on this story: Adam Brown in Bucharest at abrown23@bloomberg.net

Last Updated: November 5, 2008 03:00 EST