Hungary retail sales up 6 pc in May

Retail sales in Hungary rose by an annual 6 percent in May, the fastest rate in almost a year, a first reading of data released by the Central Statistical Office (KSH) on Wednesday shows.

Adjusted for calendar year effects, retail sales were up 5.4 percent. Adjusted food sales climbed 2.6 percent, non-food sales jumped 9.8 percent and fuel sales rose 4.3 percent.

Retail sales rose an unadjusted 3.7 percent and an adjusted 3.5 percent year on year in January-May.

Economy Minister Mihály Varga told public television in reaction to the data that retail sales were growing thanks to higher wages and disposable income, a third of which is saved while the rest is spent on consumption.

Growth in petrol revenues is an indicator of growth in the economy as a whole, while higher sales in food and non-food retail products were also seen, Varga said. The hike in the minimum wage has helped people on a lower income, he said, adding that these consumers typically use a higher portion of their income to buy food products, which indicates further growth in that sector too.