Consumer Prices Rise 3.1% In February

  • 10 Mar 2021 9:03 AM
  • Hungary Matters
Consumer Prices Rise 3.1% In February
Annual inflation in Hungary was 3.1% in February, the Central Statistical Office (KSH) said. Inflation grew at a higher rate than 2.7% registered in January, with higher tobacco prices due to excise tax increases putting upward pressure on the index.

The price of tobacco products jumped by 16.5%, while spirits and tobacco increased by 9.9%.

Prices in the category of goods that includes vehicle fuel increased by 2.7%, while vehicle fuel prices were up 4.6%.

Food prices increased by 3.4% and the price of services rose by 1.7%.

Household energy prices edged up by 0.3%, consumer durable prices increased by 3.8% and clothing prices fell by 1.6%.

Adjusted for better comparison with other European Union member states, CPI stood at 3.3%.

Core inflation, which excludes volatile food and fuel prices, was 4.1%. Inflation calculated using a basket of goods and services used by pensioners was 3.2%.

In a month-on-month comparison, consumer prices rose by 0.7%.

Analysts told MTI that inflation in February matched forecasts and a further uptick was likely on the back of rising fuel prices and the higher excise tax.

Gergely Suppan of Takarékbank said he expected March inflation to push above 4%, citing the excise tax hike among other factors.

Meanwhile, fuel prices jumping from a low base would help to drive inflation to above 5% in April, he said.

ING lead analyst Péter Virovácz said that after a cramped supply side due to the third wave of the coronavirus, the struggle to meet pent-up demand once the country reopens would drive prices even higher.

Click here to read full report on Central Statistical Office's website

  • How does this content make you feel?

XpatLoop Media Partner

Hungary Matters

Launched in January 2014, this newsletter published on week days covers 'everything you need to know about what’s going on in Hungary and beyond', according to its publisher the state media agency MTI.

Explore More Reports