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Hungary Food and Drink Market: New market research published
Hungary Food and Drink Report Q1 2014 - a new market research report on 2014-04-02 15:30:04
We expect household spending to decline in 2013, with Q113 data showing a 1.2% y-o-y fall. Despite a 34- year low in consumer price inflation and the lowest policy rate on record (4.25% at the time of writing) private consumption has remained subdued. Retail sales increased just 1.8% y-o-y in April 2013, down from 7.0% y-o-y growth in the same period of 2012, and consumer confidence remains staunchly negative at -33.9 in June. Therefore, this is still a very difficult environment for food, drink and companies operating in the wider fast-moving consumer goods industry.
However, while leading indicators remain in the doldrums, there have been signs of improvement as of late.
Consumer confidence has shown a steady, if slow, increase since its low point of -54.1 in January 2012.
This is likely due to low interest rates and inflation, which have reduced mortgage and loan repayments.
Real wage growth has also remained positive, increasing 5.9% y-o-y in April, which is also likely to have a positive effect on consumer confidence.
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