Nominal wage increases slowed down in May
According to the CSO, gross average wages in the economy increased by 9.6% y/y in May (after 10.6% y/y, seen in April), within which the private sector gross wage growth slowed to 8.5% y/y, from 10% y/y. Regular (ex bonuses) gross wage growth in the private sector - which is mostly monitored by the central bank – also slowed to 7.4% y/y (from 9.1% y/y, published for April), approaching the tolerance level of the central bank. Taking the fast appreciation of the forint exchange rate seen in the last couple of weeks into consideration, nominal wage figures should have lesser significance now in the coming rate decision. Figures however still could reinforce the current consensus that no rate hike is to be carried out at the next rate-setting monetary meeting.
