Retail sales climb 6.6pc in February

Retail sales in Hungary rose by an annual 6.6 percent in February, the Central Statistical Office (KSH) said in a second reading of data released on Tuesday.

The figure was revised up from 6.5 percent in a first reading published on April 5.

Retail sales increased by 6.6 percent when adjusted for calendar year effects.

Adjusted food sales were up 3.6 percent, non-food sales climbed by 9.2 percent and fuel sales rose 9.8 percent.

In January-February retail sales rose an unadjusted and adjusted 7.2 percent. Adjusted food sales were up 4.0 percent, non-food sales increased by 10.9 percent and fuel sales rose by 8.9 percent.

Retail sales have been on a growth track for 56 months and this is likely to continue into the coming period, the deputy state secretary for industrial strategy and economic regulation at the economy ministry told public media channel M1 after the data release. Gyula Pomázi said the retail trade data reflected the six-year wage deal concluded between the government, employees and unions in November 2016, as the minimum wage increased in 2018 and household income has grown steadily.

The ministry said in a statement that retail sales were boosted by VAT cuts as well as growing employment thanks to the six-year wage agreement.

Hungarian retail sales have grown by 27.6 percent compared with January 2010, above the 10.9 percent European Union average. The sector is expected to continue growing in the upcoming period, the statement added.

Source: MTI