BUDAPEST: The Central Statistical Office’s (KSH) latest report shows that the volume of retail sales in Hungary increased by 8.2% compared to the same period of the previous year in January 2015.
The volume of sales rose by 5.7% in food, drinks and tobacco stores, by 12% in non-food retail trade and by 9.4% in automotive fuel retailing adjusted for calendar effects. As a result of the upward trend, which has been in place for more than one-and-a-half years, turnover has reached the pre-crisis level.
In January 2015, the volume of sales at stores of food, beverages and tobacco products was up by 5.7 percent; within that category, sales grew by 6.6 percent at non-specialized food retailers and by 2.6 percent at specialized food, beverage and tobacco stores compared to January 2014. The non-food retail sector saw a sales volume increase of 12 percent, as sales in non-specialized stores, books, computer equipment and other specialized stores soared by 17%. In January 2015, sales at filling stations were up by 10 percent, thanks to the more than 16 percent drop in fuel prices over the past one year. The volume of sales at internet retailers jumped 40 percent.
According to the Economy Ministry, the main factors behind higher retail sales are improving conditions on the labour market and rising incomes. In the coming months, one-off forex loan refunds and lower loan instalments are expected to drive expansion. Higher retail sales are also reflected in GDP growth, as household consumption gained 1.7 percent in 2014, year-on-year. In light of turnover data of past months and future income and exchange rate expectations, household consumption may increase even more than the 2.6 percent growth predicted in autumn, the Ministry said in response to KSH’s report.
