The rate of retail sales growth in the month of March was even higher, 8.5 percent year-on-year, than in the first two months of the year. It has been the highest rate of growth since January 2015. Thanks to the Government’s economic policy based on tax reductions and wage hikes, sales volume at retailers has increased spectacularly: the sector has been expanding for the 57th consecutive month, and sales have increased by some 30 percent since January 2010.

The growth of wages has been attributable, among other factors, to the six-year wage agreement, while job growth and low inflation have enabled more and more people to increase consumption. Compared to January 2010, the volume of sales at Hungarian retailers was up by 29 percent, well above the EU average of 10.5 percent registered in the same period.

In March 2018, the volume of retail sales grew by 7 percent year-on-year at food and non-specified food stores, and by 5.1 percent at filling stations. The non-food sector posted sales growth of 7.8 percent.

The sales of durable consumer goods have also been underpinned by the higher transaction number concerning dwellings, driven by the Government’s housing incentives. The favourable retail sales trend is expected to continue.

(Ministry for National Economy)