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Wage data gives reason for pause in tightening cycle

The new wage date show no inflationary pressure and could augur a pause in the National Bank of Hungary's tightening cycle at a meeting on Monday, analysts told MTI.

Gross wages fell 1.2% in November from the same month a year earlier, the Central Statistical Office (KSH) said. Wages were up 1.6% in the business sector but fell 7.8% because of a drop in bonuses.

Regular wages, excluding bonuses and one-off items, were up 2.2% for the whole economy. Real wages were down 0.5%.

TakarékBank's Gergely Suppan said wages fell in the public sector because of the base effect but wage outflows in the private sector slowed too. The data do not show inflationary pressure and do not justify a rate rise, he added.

The MNB's Monetary Council will decide at a meeting on January 24 whether or not to continue a tightening cycle started in November.

Erste Bank's Zoltán Árokszállási said regular wages in the private sector rose just 3% in November year-on-year, not enough to show inflationary pressure.

Data published by KSH last Friday showed consumer prices rose 4.7% year-on-year in December, well over analysts' estimate of 4.4%. (MTI – Econews)