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Analysts see no wage pressure in economy

The February 3% yr/yr gross wage increase registered in the business sector - not including bonuses - shows that there is no wage pressure in the economy, thus, the 6% base rate could remain unchanged until the end of the year, and even possibly fall, analysts interviewed by MTI said on Tuesday after the Central Statistics Office published January-February wage figures.

Zsolt Kondrát of MKB Bank termed the February 3% rise a modest increase suggesting that there is no wage pressure in the economy.

Gergely Suppan of Takarékbank agreed with this view, noting that the overall gross wage growth slowed down in the business sector from 8.4% yr/yr in January to 4.3% yr/yr in February, which was due to the fact that end-of-year bonuses were paid in January because of tax considerations. He said the wage growth not including bonuses - which better reflects fundamental processes - slowed to 3% from 4% in January.

Suppan said net wages rose 5.7% yr/yr in February in the national economy as a whole due to the effect of tax changes, which means real wages rose 1.5% in February.