Hungary March retail sales up 16.2 pc yr/yr

Retail sales in March grew by an annual 16.2 percent from a low base, the Central Statistical Office (KSH) said on Wednesday.

Calendar-year data also showed 16.2 percent growth.

Food sales increased by 0.2 percent, non-food sales by 29.7 percent, while vehicle fuel sales jumped by 51.4 percent.

Commenting on the data, analysts said that retail sails had grown on the back of bonuses and tax refunds paid in February, fuel tourism induced by the government price cap, the low base, and inflation expectations.

Gergely Suppán of Magyar Bankholding said retail turnover exceeded expectations in March. One-off government measures such as the PIT refund for families raising children, the 13th month pension, and allowances for service members boosted already robust wage growth, which was around 13 percent, he said. Retail sales grew on the back of price caps on fuel and basic foods near the border, where it boosted shopping tourism, he said. In view of those tendencies, Bankholding expects retail growth to be above 10 percent this year, he said.