Further decline in real earnings in Hungary

In June, the average gross total earnings of full-time workers exceeded HUF 566,000 (EUR 1476). However, real earnings have fallen even further and prices have skyrocketed.

According to the Hungarian Central Statistical Office (KSH), this is 16 percent higher than the average earnings a year earlier. The average net wage including benefits rose by 15.9 percent to HUF 390,900 (EUR 1019), KSH said.

The average gross wage without benefits increased by 14.9 percent, to HUF 525,300 (EUR 1370).

The average net wage without benefits was HUF 376,900 (EUR 983), up 16.0 percent.

Real wages fell 3.4 percent, calculating with a June CPI of 20.1 percent.

The gross median wage increased by 15.6 percent to HUF 450,000 (EUR 1173).

Commenting on the data, Minister of Economic Development Márton Nagy said wage growth had remained “dynamic”, while the number of registered jobseekers was at a historic low and the number of employed was close to 4.8 million.

The government is effective in combatting “sanctions-fuelled inflation”, Nagy said, arguing that the mandatory 15 percent supermarket discounts and the online price-monitoring platform had reduced inflation by one-third, and could push it into the single digits by October.

As a result, the decline in real wages could stop in July, and the purchasing power of wages can start rising again from August, the minister said.

This will allow a return to the annual average real wage growth of over 5 percent seen in previous years, he added.

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