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Hungary’s Inflation in November Highest in 14 Years

MTI-Hungary Today 2021.12.08.

Consumer prices in Hungary grew by an annual 7.4 percent in November, after hitting 6.5 percent in October, the Central Statistical Office (KSH) said on Wednesday. The last time the country saw higher inflation was in 2007.

Prices in the category of goods that includes vehicle fuel increased by an annual 15.1 percent, as vehicle fuel prices jumped 37.7 percent, spirits and tobacco prices rose by 11 percent, lifted by a 16.8 percent increase in tobacco prices.

Food prices grew by 6 percent, while household energy prices edged 0.9 percent higher. Consumer durables increased by 6.6 percent, clothing prices by 1.8 percent, and services by 4.6 percent.

Harmonised for better comparison with other European Union member states, CPI was 7.5 percent.

Core inflation, which excludes volatile food and fuel prices, was 5.3 percent.

Month on month, inflation notched up 0.7 percent.

In October, inflation hit 6,5 percent, marking a 9-year high.

Inflation is well beyond the Hungarian central bank’s 2-4 percent tolerance band.

Central Bank Warns about Underestimating Risk of Persistent Rise in Inflation
Central Bank Warns about Underestimating Risk of Persistent Rise in Inflation

Higher inflation is the "price" of effective recovery, but recoveries could be jeopardized were inflation to become onerous, deputy governor Virág warned.Continue reading

Featured photo illustration by Attila Balázs/MTI