Hungary and Bulgaria retail sales surge as Italy, Germany decline

Retail activity strengthened in Hungary and Bulgaria in July 2026, pointing to resilient household consumption across both markets. Hungary’s retail sales rose 4.9% year over year, the strongest growth since March, supported by gains in food, nonfood products and a sharp rebound in fuel sales; sales also increased 1% from June and were up 4.5% in the first seven months of the year. Analysts attributed Hungary’s momentum to lower fuel prices, strong wage growth, subdued inflation and historically high consumer confidence, while cautioning that households could shift spending toward services and experiences and that investment remains weak. Bulgaria’s seasonally adjusted retail trade volume increased 5.6% year over year in July, following annual gains throughout 2026, though its growth was below that of Cyprus, Latvia and Sweden. Across the EU, retail trade rose 1% annually in July, while Romania, Germany, Italy and Spain recorded declines.