The average monthly wage was Ft209,418 ($1,135), rising 7.1% from the year-earlier period, the Budapest-based statistical office said today. The rate fell from 11.9% in December. Policy makers, who will meet to discuss rates on March 26, held off raising the benchmark borrowing cost from 8% last month, as they were divided over the outlook for wages. Inflation is the fastest in almost six years after the government raised regulated costs and the direction of consumer-price index hinges on the ability to contain wages, they said. „Wage developments over the coming months might be of crucial importance,” the bank said in a statement on March 14.„The uncertainty surrounding price and wage coordination remains significant. This is a major source of upward risk for the next two years.” The majority of policy makers on February 26 voted to keep the benchmark two-week deposit rate unchanged for the fourth month.
The bank that day forecast 7.4% average monthly inflation for this year, raising its previous 6.9% estimate, compared with an 8.8% rate in February. The forint weakened to 246.35 per euro by 9:44 a.m. in Budapest, from 245.84 late yesterday, which was an 18-month high. The currency is the world’s second-best performer over the past month, behind the Slovak koruna, having gained 2.3% versus the euro. In January, wages for workers of private companies were 10.4% higher than a year earlier, while public-sector salaries, which included bonuses, were up 5.6% The number of Hungarians employed in January was 2.78 million, 1% more than a year earlier. The government shed 3.4% of its jobs in a year, reducing the number of public workers to 753,400. (Bloomberg)
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
