ING THINK
Wage growth in Hungary remained in double digits in February, although the pace is clearly slowing. Household purchasing power is rising, but we are still waiting for a significant pick-up in consumption.
According to the latest Hungarian Central Statistical Office (HCSO9 earnings statistics), the pace of year-on-year wage growth in Hungary slowed further in February. However, the still rather high growth rate of 14% year-on-year (based on the full range of employers) is still much more reflective of economic developments in 2023 than of what has happened this year. Given that many companies now follow a spring-to-spring wage cycle (i.e., wage increases take place between March and April rather than in January as in the past), the February figures still largely capture high wage increases to compensate for the extreme inflationary environment in 2023.
