NGM: in addition to the reduction of inflation and the increase in real wages, the development of retail trade also shows an increasingly hopeful picture

By: Trademagazin Date: 2024. 01. 08. 12:03

According to the data of the Central Statistical Office (KSH), in November 2023, the value of retail trade nominally reached HUF 1,602 billion, which means an increase of HUF 50 billion on an annual basis. This means that in the first 11 months of 2023, the value of retail sales exceeded the previous year by nearly HUF 1,300 billion, the Ministry of National Economy (NGM) pointed out in its announcement on Monday.

In terms of volume, retail turnover decreased by 5.4 percent in November 2023, which is the most favorable figure so far after the low point experienced in April 2023. An encouraging result is, on the one hand, that the retail turnover achieved an increase of 0.8 percent compared to the previous month, and on the other hand, that the sales volume of food-type mixed stores, which represent 77 percent of the food retail trade, already reached the level of a year earlier in November. The last example of the latter was in May 2022 – the NGM drew attention. As they added, the turnover of clothing, furniture and technical stores also increased significantly on a monthly basis.

The ministry’s commentary also touched on the fact that 2023 was the year of inflation reduction. Inflation caused by the war, sanctions and price speculation by multinationals was curbed by the effective and efficient measures of the government – including mandatory campaigns and online price monitoring – and reduced to single digits, the rate of inflation is already 7.9 percent by November, and is expected to be 6 percent in December. decreased to around one percent. At the same time, the real wage revolution took place in September, i.e. families’ salaries are worth more and more again. All of this had an effect that could be seen in the trade data as well – noted the NGM.

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