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26th January, 2023

Inflation eating into real wage growth

The average gross wage of full-time employees was up 16.8% year-on-year to Ft 563,600 in November, while the average net earnings, taking into account discounts and allowances, were 17.6% higher at Ft 387,800, the statistics office KSH reports.

The net median wage, which presents a more accurate picture of the wage dynamics, was Ft 305,800 in November, up 19.2% from the same period of 2021.

The increase in wages was driven by the increase in the statutory minimum wage and to companies raising salaries during the year to keep pace with inflation, the KSH said.

Real earnings fell by 4.7% as consumer prices were up 22.5%, year-on-year in November.

Gross wages increased by 17.5% year-on-year in January-November, rising 3.4% in real terms, the Economy Ministry said.

Wage growth in earnings is set to continue in 2023, as the minimum wage has gone up by 16% and the guaranteed minimum wage by 14%, the ministry added.

Wage growth in the public sector, at 10.5% year-on-year, was the slowest pace since December 2021, ING Bank analyst Peter Virovacz observed. Given the unfolding wage-price spiral, there is a risk that inflation may be sustained, he added. (nepszava.hu; rtl.hu; napi.hu; forbes.hu; hvg.hu; hirado.hu)
26th January, 2023

Energy infrastructure investments to rise fivefold by 2030

The government is planning to increase infrastructure investments by five-fold by 2030 compared to the previous seven years, Energy Minister Csaba Lantos told Index in an interview.

Investments would focus on renewable energy resources, network development and infrastructure upgrades to increase flexibility, he added.

Ensuring the security of supply, affordability and sustainability are the most important challenges facing the sector, said Lantos.

Electricity consumption in Hungary came to 44Twh last year, of which roughly 70% was produced in Hungary, but the country is largely dependent on imports.

The government calculates that demand will shoot up to 68Twh by 2030, a 55% increase.

Consumers have adapted to rising prices by cutting usage, Lantos observed.

Domestic gas consumption fell by 17% last year, and in December alone households and companies used 25% less gas than one year earlier.

Lantos said the gas price formula for retail clients for consumption above the average will be reviewed by April 30. (azuzlet.hu; index.hu; infostart.hu; portfolio.hu; hvg.hu; 24.hu)
26th January, 2023

Rents lower in December

Home rental rates in Hungary fell for the first time in two years on a monthly basis in December, down 0.7% at a national level and sinking by 0.9% in Budapest, according to data compiled by the Central Statistics Office from listings site Ingatlan.com.

On an annual basis, rents were up 20% on average in December and were 22% higher in Budapest.

The monthly rental rate in the capital was in the Ft 140,000-250,000 range, with an average of Ft 200,000.

Outside Budapest, monthly rental rates were highest in Gyor, Szekesfehervar, Tatabanya and Veszprem at Ft 150,000 and lowest in Salgotarjan and Bekescsaba at Ft 90,000.

Nominal rents were still much higher than a year earlier, but in real terms they have been falling since August, leading to a 13% drop nationally and a 15% decline in Budapest compared to the pre-pandemic peak in January 2020, Ingatlan.com analyst Laszlo Balogh pointed out.

The number of ads has fallen significantly, down by more than 20% from both 2020 and 2021. (novekedes.hu; profitline.hu; napi.hu; portfolio.hu; hirado.hu; 24.hu)
26th January, 2023

AKK sells Ft 15bn of six-month T-bills

State debt manager AKK sold Ft 15 billion of discount six-month T-bills at Wednesday’s auction, Ft 5 billion less than planned, after receiving Ft 31.4 billion in bids.

The average yield fell by eight basis points to 13.99% from the previous auction a week ago, but was 41 basis points above the secondary market benchmark yield. (tozsdeforum.hu)

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