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Hungary
Consumption Continues to Expand for the Sixth Month in a Row
Based on the latest data from the Hungarian Central Statistical Office, the volume of retail sales increased by 2.6 percent in June 2024 compared to the same period of the previous year. Six months of uninterrupted growth in consumption means that th
Based on the latest data from the Hungarian Central Statistical Office, the volume of retail sales increased by 2.6 percent in June 2024 compared to the same period of the previous year. Six months of uninterrupted growth in consumption means that the volume of retail sales in January-June this year was 2.7 percent higher than in the first six months of 2023, according to calendar-adjusted data, the Ministry for National Economy announced.
In June, with a 3.6 percent increase in non-food retail trade, the turnover of food and food-related mixed retail trade grew by 3.2 percent compared to the same period of the previous year. Within the latter, grocery convenience stores, accounting for 75 percent of food retailing, grew by 4.1 percent.
This means that in June, families spent more than HUF 594 billion (EUR 1.5 billion) in grocery stores alone, some HUF 20 billion (EUR 50 million) more than in June last year,
the statement from the ministry recalled. Furthermore, they also pointed out that, in addition to the growth in food retailing, the 14 percent increase in the volume of mail order and internet retailing, covering a wide range of goods and accounts for 7.9 percent of retail sales, is also noteworthy.
It was stressed that the containment of inflation, continuing to be kept low by the government’s effective measures, has played an important role in the expansion of retail sales. In June 2024, inflation reached 3.7 percent, while food inflation eased to 1.1 percent on an annual basis, with food prices falling by 0.3 percent in June compared to the previous month. The recovery in domestic consumption is underway, thanks to nine months of real wage growth and the gradual easing of the cautionary motive.
Fact
The war in Ukraine and the European Union’s sanctions policy have pushed prices in Hungary to record highs. Since then, in addition to the introduction of a food price freeze, a number of other measures have been taken to protect consumers, such as the introduction of mandatory in-store promotions and online price monitoring, and an awareness campaign on reduced packaging of products from March 1, 2024. These government measures have already helped to bring down inflation, which had fallen to single digits (9.9 percent) by October last year.The recovery in consumer confidence is also reflected in the dynamic growth of tourism, expanding by almost 8 percent in the first half of the year compared to a record year last year.
The ministry added that the upward trend in retail sales is expected to continue in the coming months, as rising incomes and increased labor market activity continue to have a positive impact on the sector. The government is operating the price monitoring system to stimulate competition in the market, which not only increases price transparency but also contributes to informed consumer choices. In the long term, this will strengthen the stability of the retail market and thus contribute to sustaining long-term economic growth, the Ministry for National Economy concluded.
Via MTI; Featured image via Pixabay
The post Consumption Continues to Expand for the Sixth Month in a Row appeared first on Hungary Today.
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