SÁZ: High real wage growth is not sustainable in the long term

2023-09-23 14:49:58

Real wage growth that substantially exceeds the improvement and growth of productivity is not sustainable in the long term – he warned László Windisch, chairman of the State Audit Office, former MNB vice-chairman at the Közgázdász vandrogyelő, according to portfolio.hu, who called the current high inflation a question of questions. According to him, it is not worth examining just the past one or two years and looking for someone responsible for the high inflation environment that has developed now, but rather looking back over a longer period. He sees that wage dynamics, as well as the performance, productivity and efficiency of individual economic sectors, also play a role in the current situation.

Windisch cited the performance of the domestic food industry as an example, because according to him, labor productivity in the food industry in Hungary is low, which can contribute to the high level of food inflation.

According to the ÁSZ president, inflation expectations are of great importance in the development of the economy, and one must be careful with statements so that they do not add to the situation. “So when everything is about, and it is flowing from the faucet in Hungary, that there will be a collapse due to high inflation, then it is embedded in the expectations to such an extent and in such a way that it can become self-fulfilling,” he stated according to the portfolio.hu article.