Inflation Half-a-Percent above Expectations

Although experts had previously expected inflation to rise to 22 percent, it rose from 21.1 percent in October to 22.5 percent in November. Over the past year, household energy and food prices have risen the most, the Hungarian Central Statistical Office reported on Thursday.

In one month, consumer prices rose by an average of 1.8 percent, while annual core inflation rose to 24.0 percent from 22.3 percent in October.

Food prices rose by 43.8 percent, with the price of eggs rising by 102.9 percent, bread by 81.8 percent, dairy products by 79.0 percent, and cheese by 78.8 percent. Flour and edible oil prices increased the least, by 8.7 and 3.2 percent respectively.

Household energy rose by 65.9 percent. Within this, the price of piped gas increased by 124.3 percent, firewood by 60.1 percent, cylinder gas by 52.1 percent, and electricity by 28.3 percent. The prices of goods altogether rose by 27.1 percent compared to November of last year, while the prices of services increased by 9.0 percent on average.

Experts say the rise in inflation is still not over, and is likely to be boosted further by the lifting of the fuel price freeze, which is expected to be reflected in the December data.

It is estimated that this could push inflation up to 25 percent. On an annual basis, however, inflation will be much lower. Gergely Suppan, senior analyst at Magyar Bankholding, one of Hungary’s largest bank groups, said in the light of the latest data that average annual inflation could be 14.6% this year, while next year this figure could rise to 17.5 percent.

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