The government is fighting hard against the economic difficulties, the most important goal is to stop the deterioration of money.
The government is fighting with overhead protection, price caps, and most recently with mandatory promotions raised to 15 percent, as well as online price monitoring in order to beat inflation. The measures are effective, inflation has already decreased by a third since the beginning of the year, and it may melt down to single digits by October, the Ministry of Economic Development (GFM) stated in its statement on Thursday.
For the government, the successful fight against inflation is a key issue, as it can restore the period of continuous real wage growth that was customary in previous years.
As a result of the protracted war and the soaring inflation due to the misguided sanctions, from September 2022 to the present day, real wages have fallen, which has not been seen for many years, the ministry pointed out.
The government reacted quickly to the problems arising from the sanctioned inflation, thanks to the anti-inflation measures taken and the large-scale increase in wages, real wage growth can be realized again in Hungary from August and there is every chance that the purchasing value of wages will not decrease on an annual basis, but will increase.
The Ministry of Economic Development stated: it is an epoch-making achievement that the purchasing power of salaries has increased continuously over the past 10 years, i.e. every single year, so compared to 2010, the real value of earnings was more than 70 percent higher overall by the end of last year.
Next year, with the restoration of growth and the further drastic reduction of the rate of inflation, it will once again be possible to restore the rate of real wage growth that was customary in previous years, on average over 5 percent annually.
The ministry also pointed out that the number of employed people increased by 1 million compared to 2010, according to the latest data, nearly 4.8 million people are working in Hungary, while the number of registered job seekers has never been so low. The main goal of the government remains the same: in order to protect families, in addition to maintaining jobs, real wages must also increase in the long term.
MTI