OKSZ commented on the latest data from the Central Statistical Office of Hungary (KSH)

This “momentum” was broken in February and March due to rising inflation and the government’s response to it. However, it should be noted that the expansion of consumption was not particularly strong in the second half of last year, as due to the prolonged uncertainty of customers, its rate was well below the growth rate of real wages.

Although customers have not yet encountered the harmful effects of maintaining the margin freeze, they are already with us:

• In recent months, some suppliers have been willing to postpone price increases because they trusted that the retail trade, which has regained its breath after the margin freeze was lifted on May 31, will be more flexible in price negotiations. According to the OKSZ, there is a danger that suppliers will now try to enforce these demands. Trade alone cannot curb the resulting increase in consumer prices. To curb price increases, the cooperation of the entire supply chain is needed, as we pointed out in our proposals submitted to the Ministry of Finance.
• Investments in trade are already a quarter behind the previous quarter’s level. Retail trade is therefore unable to contribute to the national economic performance to the extent that would be expected in a predictable economic and regulatory environment. This is not a momentary problem, but a lasting effect that will have harmful consequences for the future.