NGM: recovery of consumption continues, retail turnover in January 2024 increased by 0.6 percent compared to the same period of the previous year

Emphasize: this is considered a significant result, as based on domestic and international trends, it can be considered common that the desire to consume at the end of the year due to the holidays is followed by a decline in traffic in January.

Overall, the two indicators indicate that the recovery of consumption continued, which is well exemplified by the fact that the volume of retail trade was able to expand again in January after a 13-month decline in annual comparison. This confirmed that the retail turnover may have passed the low point and entered the recovery phase – stated the NGM in its commentary.

They reminded: in 2023, the government successfully broke inflation. Thanks to targeted and effective measures such as the online price monitoring system and mandatory sales, inflation was reduced to 5.5 percent by December and 3.8 percent by the beginning of 2024. In parallel with the collapse of inflation and the continuous growth of real wages following the turnaround in September, consumer confidence also strengthened, which, in addition to the gradual dissolution of the cautionary motive, makes a substantial contribution to the recovery of consumption. This is also indicated by the fact that the sales volume of grocery stores, which account for three quarters of food retail sales, rose by 1 percent on an annual basis in January, while the turnover of fuel stations increased by 4.6 percen