K&H: It is difficult for companies to cope with double-digit inflation
Inflation above 20 percent affects large companies, the operation of 9 out of 10 companies is negatively affected, according to the latest measurement of the K&H large company growth index. The large rise in inflation is primarily compensated by cost reductions and price increases. In the case of the latter, nearly half of the companies fully incorporated the rate of inflation into their prices.
After domestic demand, inflation is currently one of the most decisive factors in terms of companies’ profitability, according to the K&H large company growth index, which examines the expectations of Hungarian companies with annual sales of over two billion forints for the next year.
“The domestic inflation exceeded 20 percent in September last year, and then peaked at 25.7 percent in January. It is encouraging that a slow decline began after that, but the single-digit value is still to come. According to the European Commission’s latest forecast, the Hungarian annual inflation rate is expected to rise from 15.3 percent in 2022 to 16.4 percent this year, and then decrease to 4 percent in 2024. Double-digit inflation will therefore remain with us for some time, which will largely determine the vision and operation of large companies.”
– said Gábor Rajna, head of K&H’s Corporate Clients division.
Related news
Bad times after good ones?
K&H’s large company growth index – which analyses the economic…
Read more >The number of purchases made using smart devices has increased one and a half times in a year
Digital payments continue to make inroads, according to K&H’s own…
Read more >K&H: vacation is knocking, let’s go to the big world!
Summer trips abroad are the first real independent adventure for…
Read more >Related news
Who won and who lost in 2024? – Spectacular differences in results in food retail
The balance of the 2024 business year in the food…
Read more >Viktor Orbán: we will introduce margin reduction for new products as well, if necessary
The margin regulation must be maintained because people must be…
Read more >Healthy meat products rich in fiber and protein have been developed in Debrecen
A new product line consisting of health-promoting, fiber- and protein-rich…
Read more >