Retail sales edged down 0.4pc according to unadjusted data.

Adjusted food sales increased 1.2pc, non-food sales rose 5.9pc and vehicle fuel sales inched 0.1pc higher.

Retail sales inched down 0.5pc in a month-on-month comparison, adjusted for seasonal and calendar year effects.

In absolute terms, retail sales came to HUF 1,630bn in March.

Food sales accounted for 49pc of the total, non-food sales for 36pc and sales at petrol stations for 15pc.

In January-March, retail sales were up 2.7pc according to calendar-adjusted data.

Commenting on the data, the National Economy Ministry said the March slowdown in retail sales was a temporary, technical phenomenon due to workday-effect.

It noted that Easter was at the end of March in 2024 but fell on the second half of April this year so Easter shopping will have had its full effect in April.

Based on data from online tills, the ministry expects to see 5-6pc retail sales growth in April, the most dynamic so far this year, pointing to the clear upward trend in retail turnover, supported by the government's price-cutting measures and the strengthening of consumer confidence, the ministry said.

NGM: retail turnover will increase by 5-6 percent in April after a temporary halt in March

The March slowdown in retail sales is merely a temporary, technical phenomenon, the background of which is the Easter effect, meaning that in 2024 Easter fell at the end of March, while this year it fell in the second half of April, so the effect of Easter shopping sprees took full effect in April this year, the Ministry of National Economy (NGM) stated on Wednesday in its commentary on the latest data.

The Ministry of National Economy expects the most dynamic growth of the year so far in April, based on online cash register data, with a level of up to 5-6 percent.

The two months should therefore be examined together, based on which the expansion of retail turnover remains clear, supported by the government's price-cutting measures and the strengthening of consumer confidence, the statement said.

The analysis cites the data of the Central Statistical Office (KSH) adjusted for calendar effects, based on which the volume of retail trade in March 2025 decreased by 0.4 percent compared to the same period of the previous year, according to raw data, and adjusted for calendar effects (and Easter effects), it exceeded the same period of the previous year by 0.4 percent.

In food and food-related mixed stores, the sales volume, adjusted for calendar effects, increased by 1.2 percent, while in non-food retail trade by 5.9 percent compared to the same period of the previous year. 

According to seasonally and calendar-adjusted data, the volume of retail trade was 0.5 percent lower than the previous month.

"This can only be considered a temporary halt, which resulted from the Easter effect," the NGM emphasised again. 

Easter has a particularly significant impact on the shopping habits of Hungarian households, with households' consumption of food and food-related products increasing significantly in the 1-2 weeks preceding the holiday. 

In 2024, Easter fell at the end of March, while this year it fell in the second half of April, so the effect of Easter shopping sprees was fully felt in April this year.

The Ministry of National Economy - based on data from online cash registers - expects the most dynamic expansion of this year so far in April, with a level of up to 5-6 percent, which will put retail turnover back on a growth path. 

It is therefore advisable to interpret the March and April data together, which highlights that retail turnover continues to grow due to the government's price-cutting measures and the strengthening of consumer confidence.

In January-March 2025, compared to the same period of the previous year, the volume of retail trade turnover increased by 2.7 percent, adjusted for calendar effects. 

The volume of sales in food and food-related mixed retail trade increased by 3 percent, and in non-food retail trade by 5.6 percent, the NGM quoted the statistical report as saying.

The expansion of turnover is supported by several factors: employment is outstanding, with more than 4.7 million people working in Hungary. 

Compared to 2010, the average wage has more than tripled and the minimum wage has quadrupled, and real wages have been growing continuously for 1.5 years, which provides significant additional consumption potential for households.

As highlighted, in addition to this, high interest rates on household government securities also contribute to the increase in households' purchasing power. 

As a result of all this, Hungarian families are increasingly willing to spend on travel, which is also supported by the revival of domestic tourism and the increase in the number of outbound trips, the Ministry of Economy added.

The price reduction measures introduced by the government are contributing significantly to the dynamic expansion of household consumption and the substantial reduction of everyday expenses of Hungarian families. 

As a result of the margin reduction launched in March, 905 products are available at an average price of 19.3 percent cheaper, which means significant relief for households.

They also recalled that the banking sector and telecommunications service providers have fulfilled the voluntary price restriction requirements. 

The Ministry of National Economy is currently investigating which additional non-food product groups should be included in the measure, in addition to food.

The goal is to provide lasting support to families while combating price increases and promoting the recovery of domestic demand.

According to the NGM, all conditions are in place for retail sales to grow again at a spectacular pace in the coming months. 

The government's goal is to give economic growth a new boost through price reductions and increased consumption. " But we are not stopping here, the government is working to achieve the highest possible economic growth ," the NGM emphasised.

Source: 
MTI - The Hungarian News Agency, founded in 1881.

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