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Hungary’s Inflation at 14-Year Record for Second Month in a Row

MTI-Hungary Today 2022.01.14.

Hungarian annual inflation was 7.4 percent in December, the Central Statistical Office (KSH) said on Friday.

Higher cigarette and vehicle fuel prices continued to be the main drivers, though food and consumer durables prices rose above headline inflation.

Spirits and tobacco prices increased by 8.9 percent, including a 12.7 percent rise in the price of tobacco products. Prices in the category of goods that includes vehicle fuel grew by 11.7 percent as vehicle fuel prices jumped 25.9 percent. Food prices increased by 8 percent and consumer durable prices were up 7.5 percent.

Core inflation, which excludes volatile fuel and food prices, was 6.4 percent.

CPI calculated with a basket of goods and services used by pensioners was 6.7 percent.

Month on month, inflation was 0.3 percent.

Hungary's Inflation in November Highest in 14 Years
Hungary's Inflation in November Highest in 14 Years

Vehicle fuel prices jumped almost 38 percent, spirits and tobacco prices rose by 11 percent, food prices grew by 6 percent.Continue reading

Average annual inflation was 5.1 percent in 2021, while adjusted for a better comparison with other European Union member states, the figure was 5.2 percent.

National Bank of Hungary: inflation remained unchanged from the previous month

The central bank noted in response to the data release that inflation remained unchanged from the previous month in December, putting Hungary among European countries which saw the acceleration of inflation halt by the end of the year.

Core inflation and core inflation excluding the effects of indirect taxes grew by 1.1 percentage point to 6.4 percent. This increase was counterbalanced by more moderate inflation in the price of fuel, alcohol and tobacco, it added.

Who Will Benefit from Govt's Recently Announced Food Price Cap?
Who Will Benefit from Govt's Recently Announced Food Price Cap?

The government hopes for a 2% reduction on the inflation level as a result of the announced measures.Continue reading

Featured photo illustration by Attila Balázs/MTI