Inflation has declined “visibly” on a monthly basis for the first time since November 2020, Minister of Economic Development Márton Nagy revealed on Thursday, commenting on data from the Hungarian Central Statistical Office (KSH).
The KSH said on Thursday that
the inflation rate fell to 21.5 percent in May 2023, on an annual basis, a decrease of more than four percentage points from the January peak,
and 2.5 percentage points from the latest data in April.
The minister explained that this is the first time since November 2020, that the inflation figure has also fallen (by 0.4 percent on average) compared to the previous month. This indicates that the decline in consumer prices is becoming more dynamic and government measures are working, they said.
In particular, Márton Nagy stressed that the food inflation rate fell by a more significant 4.5 percentage points compared with the annual average in April. Meanwhile, on a month-on-month basis, cheese, rice, and poultry were 2.3 percent, 1.7 percent and 0.6 percent lower, respectively, while household energy also saw a decline, with gas prices falling by 6.4 percent. The data confirmed that inflation is moderating at a faster pace thanks to government measures, and will continue to accelerate in the second half of the year, the statement said.
Nagy assured that the government is doing its utmost to protect families, pensioners, and jobs. The fight against inflation is one of the government’s big commitments, and it is certain that
by the end of the year, sanctions inflation will be in the single digits,”
This will be reinforced by the introduction of compulsory retail promotions on June 1, and the online price monitoring system, which will start on July 1. Thanks to the measures, shoppers already have access to a food basket of 20 products at bargain prices, while from July onwards, the best consumer prices will be available on a daily basis for 60 product ranges. The minister explained that the measures will increase competition, which will increasingly push down inflation, GFM said.
Via MTI, Featured image: MTI