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

  • Shell Further Limits Fuel Sales in Hungary

    Shell Further Limits Fuel Sales in Hungary

    • 28 Nov 2022 6:18 AM

    Due to its limited supply received, Shell began limiting its fuel sales to Ft 20,000 per vehicle for petrol and to Ft 50,000 for diesel from Friday, the company announced.

  • August Retail Sales Rise 2.4% in Hungary

    August Retail Sales Rise 2.4% in Hungary

    • 7 Oct 2022 11:35 AM

    In August 2022, the volume of sales in retail trade increased by 3.3% according to raw data, and by 2.4% when adjusted for calendar effects compared to the same period of the previous year, according to data published by the Central Statistical Office (KSH).