Hungarian Wage Growth Accelerates Unexpectedly in August Surpassing Forecasts

Key Facts

Hungarian wage growth surprised to the upside in August 2026, marking a second consecutive month of acceleration. ING reported that average gross wages rose by 8.4% year-on-year, while net earnings returned to double-digit growth, resulting in an 8.6% increase in real earnings amid low inflation environments.

The acceleration was driven by a tight labor market and one-off factors such as overtime related to summer heatwaves, alongside the 11% minimum wage hike implemented in January 2026. ING expects annual average wage growth to reach 9-10% for the full year 2026, though analysts anticipate a slowdown next year as future minimum wage increases are likely to be more restrained.