Most Hungarians Spend Less in Inflationary Environment

In the current inflationary environment, 80% of Hungarians indicated that they are spending less to protect their current financial situation, with consumers cutting back on purchases of food and hygiene products in particular, the CEO of Magyar Cetelem Bank said at a press conference in Budapest on Wednesday, presenting the results of a survey conducted among their clients.

Péter Szabó added that the survey, conducted in the first half of May, involved more than 1,000 people.

He said that while 24% of Hungarians are cutting back on spending, 24% are working more, i.e. trying to earn extra income to maintain their financial situation, while 12% have had to dip into their savings.

Feedback from Cetelem's Hungarian customers also showed that they expect price increases of more than 20% for food and building materials in the next 12 months, but that they also expect price increases in several other product groups.

In addition to inflation, consumers were also asked about the impact of the war between Russia and Ukraine, and feedback showed that while 20% of respondents had cancelled a planned major investment (such as buying a car or property) because of the latter, 65% said they had not changed their consumption habits because of the armed conflict.