OKSZ: Household consumption cannot keep up with the growth rate of real wages

Although the overall consumer confidence index shows a slightly upward trend, the perception of one’s own money that can be spent on high-value consumer goods still reflects uncertainty. The news about the Iranian crisis, the increase in fuel prices and the weakening of the forint are in themselves further cooling public expectations.

“Retail chains with an international background are doing everything they can to keep prices low in the fierce market competition”

– says Tamás Kozák, Secretary General of the National Trade Association. The fact that margin restrictions are only suitable for superficial and short-term management reduces the room for movement of retailers, because they do not take into account price-raising efforts from suppliers, the characteristics of the market environment, efficiency problems at the supply chain level, and the demand and price-increasing effect of income flowing out before the election. Over the past year, the OKSZ has consistently emphasized that the margin stop is unsuitable for managing price increases, and that only healthy competition can do this.

Comparing price data is made more difficult by the fact that the effect of the margin stop will be completely removed from the 12-month consumer price index reference base (base effect) when the next data release is made, which is why the food price index will show an increase even if prices in April do not change compared to March.