Sales of food, drinks and tobacco were up 0.9% year-on-year in May. Sales of non-food products were up 2.1%, the biggest increase since March 2012, signalling an improving trend in consumption, news website Origo observes.

Fuel sales showed robust growth, up 6.8% year-on-year.

These figures are inconsistent with those from the tax authority, which show a 2% fall in sales of petrol and 4% growth in diesel sales in May, Napi Gazdasag adds.

Analysts note that falling fuel prices helped to lift consumption.

Growth in food sales remains anaemic, with no signs of a breakthrough, despite rising wages and falling consumer prices, a combination that generally pushes food sales up, Napi Gazdasag observes.

There was growth across a broader base among the components of retail trade, said Takarekbank senior analyst Gergely Suppan, pointing to the rise in non-food and fuel sales.

Suppan forecasts 2% growth in retail sales for 2013.

May’s retail growth is a result of the 6.8% rise in fuel sales, which could indicate volatility and seasonal changes, according to Raiffeisen analyst Adam Keszeg.

He expects retail sales to remain in the black in the second half, but sees a modest 0.4-0.5% expansion for the year.

Source: Hungary Around the Clock

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