Inflation in Hungary Reaches 27-Year High at 26%
- 14 Feb 2023 7:48 AM
- Hungary Around the Clock
Consumer prices were up 25.7% year-on-year in January, the highest level in 27 years, up from 24.5% in the previous month, slightly exceeding forecasts, according to data issued by the Central Statistics Office (KSH).
On a monthly basis, prices rose by 2.3%, also well above the consensus.
Core inflation, which excludes volatile fuel and food prices, rose to 25.4% from 24.8% in December, which suggests that underlying inflationary pressures remain quite strong, according to analysts.
Food prices were up 44% year-on-year in January, including an 80.6% rise in bread prices, a 79.4% increase in egg prices and a 75.8% increase in the price of dairy products.
Household energy inflation moderated from December, mainly due to more conscious energy consumption and a mild winter, according to analyst Peter Virovácz of ING bank, but was still up by 52.4% year-on-year after the government reduced energy subsidies in August.
Prices in the category of goods that includes vehicle fuel rose by 26.3%, climbing at a faster pace after a cap on motor fuel prices was lifted early in December.
Analysts estimate that the removal of the price cap lifted inflation by 0.7-0.8 percentage points.
Data shows consumer durable prices increased by 13.5% and services by 13% in January on an annual basis.
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