Analysts attribute big August wage rise to one-off effects
A bigger than expected rise in wages in August was probably caused by calendar-year effects and is not a sign of wage-side inflationary pressure, analysts told MTI on Tuesday after the Central Statistics Office (KSH) published fresh data.
Gross wages rose 6.5% year-on-year in August, KSH said in the morning. Net wages were up 6.8%.
Wages rose faster than expected in August, but the fact the month had two more work days than a year ago probably explains some of the increase, said Takarékbank’s Gergely Suppan. He put year-on-year wage growth around 4.5% for the rest of the year, but said the increase would not put consumption on the growth path because of high repayments on foreign currency-denominated loans and caution among households.
Erste's Zoltán Árokszállási also said the big wage increase does not show wage-side inflationary pressure because it was probably the result of fewer workdays in the base period. Wage growth or employment is unlikely to pick up in the coming months because of the worsening economic outlook this year. A big increase in the minimum wage planned for next year could raise wages overall but could adversely affect employment, he added.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.