The reason for the inflation is the negative impact of the coronavirus on the world's economy, reduced production capacities, as well as problems in logistics. In addition, there is the loss of the forint against the euro.Continue reading
Compared to last year, Hungarians are planning to spend 25 percent more money on gifts. According to a recent study, Hungarian consumers will spend 15.5 percent more on Christmas gifts this year than last year. Consumer electronic devices are again the most in-demand – just like before the pandemic.
This article was originally published on our sister-site, Ungarn Heute.
While Hungarians spent an average of 52,300 forints (145 euros) on Christmas gifts last year, this year the sum is 60,411 forints (168 euros), an increase of 15.5 percent and as much as 17 percent of the average Hungarian net income. Almost 28 percent of the money is used for children’s gifts.
The number of those for whom gifts are bought has increased from 5 (2020) to 7 in 2021, which is why the average amount spent on a gift has decreased by 600 forints. 62 percent of gifts go to relatives, another 26 percent to relatives of partners/spouses, and 20 percent to friends.
Whereas last year, as a result of the pandemic, it was mainly clothing and toys that were most popular, this year consumer electronic devices are once again most in demand. Shopping habits are also different this year than in 2020: although online purchasing is showing an upward trend on an annual basis (expected to be up 30 percent year-on-year), consumers in 2021 plan to procure their Christmas gifts less from web stores (down 9 percent), and more from shopping malls (up 8 percent), and other brick-and-mortar retailers (up 6 percent).
As a result of production and delivery complications, especially in Asia, some items will experience shortages and inflation. There will also be a sharp increase in prices due to inflation, rising fuel prices, and the depreciation of the forint against the euro. However, it will hardly reduce Hungarians’ desire to buy, since the government had announced several restrictive measures a few weeks ago. The trade portal further writes: “The VAT refund due at the beginning of next year may trigger a premature buying fever that was not planned this year and is now difficult to measure. This could stimulate a willingness to borrow, especially for goods and services, and lead to bolder spending by households with savings.”
Source: Pénzcentrum
Featured image via Pixabay
