Analysis: Recent Retail Sales Jump

  • 7 Jul 2022 10:03 AM
  • Hungary Matters
Analysis: Recent Retail Sales Jump
Retail sales in Hungary rose by an annual 12.0% in May, data released by the Central Statistical Office (KSH) on Wednesday show.

Adjusted for calendar year effects, retail sales climbed 11.1%, showing double-digit growth for the third month in a row.

Adjusted food sales increased by 3.0%, non-food sales rose by 9.5% and vehicle fuel sales jumped 37.5%. In absolute terms, retail sales came to 1,435 billion forints (EUR 3.6bn).

Food sales accounted for 44% of the total, non-food sales for 37% and sales at petrol stations for 19%.

A detailed breakdown of the data shows clothing and footwear sales rose by 35.0%, sales of computers and electronics by 9.5%, and sales in furniture shops edged up by 1.1%.

Sales of second-hand shops jumped by 54.0%, while online and mail order sales fell by 1.4%, albeit from a high base.

For the period January-May, retail sales rose by an annual unadjusted 11.9% and an adjusted 11.6%. Adjusted food sales increased by 2.7%, non-food sales rose by 14.9% and vehicle fuel sales climbed by 31.6%.

ING Bank chief analyst Péter Virovácz attributed the slowdown in retail sales growth to base effects, in part, but said it also suggests households have already spent much of the income from tax refunds and pension bonuses disbursed earlier in the year.

He added that the big increase in second-hand shop sales could signal households’ initial reaction to climbing inflation.

Magyar Bankholding senior analyst Gergely Suppan said retail sales growth continues to be supported by tax refunds, pension bonuses, bonuses for police and soldiers and a wage growth over 15%.

Purchases by, and for, refugees from Ukraine are also a factor, he added. He said the effect of petrol tourism on retail sales could weigh in June as foreign motorists are no longer allowed to top up their tanks at the regulated 480 forints per litre price.

  • How does this content make you feel?

XpatLoop Media Partner

Hungary Matters

Launched in January 2014, this newsletter published on week days covers 'everything you need to know about what’s going on in Hungary and beyond', according to its publisher the state media agency MTI.

Explore More Reports

  • Latest Retail Sales in Hungary Up 4.1%

    Latest Retail Sales in Hungary Up 4.1%

    • 4 Aug 2022 10:04 AM

    Hungarian retail sales in June grew by an annual 4.1%, down from 12% growth in May, the Central Statistical Office (KSH) said on Wednesday.

  • Major Retailer Sees No Food Shortage But High Prices in Hungary

    Major Retailer Sees No Food Shortage But High Prices in Hungary

    • 5 Jul 2022 10:25 AM

    There is no need to worry that there will be a serious shortage of anything, but the price of some products will rise dramatically, which is simply a fact, Gabriella Heiszler CEO of retail chain Spar Magyarország told personal finance website Pénzcentrum on Monday.