Hungary’s Inflation Rate Rises to 5.5% in January, Driven by Food, Service Costs

  • 12 Feb 2025 1:17 PM
  • Budapest Business Journal
Hungary’s Inflation Rate Rises to 5.5% in January, Driven by Food, Service Costs
Hungary’s inflation rate reached 5.5% in January compared to the same month a year earlier, according to the Central Statistical Office (KSH), with soaring food and service prices contributing to the increase.

On a monthly basis, consumer prices rose 1.5% from December, with motor fuel prices climbing 2.7%.

Food Prices Continue to Climb

Food prices increased by 6.% year-over-year, with staple goods experiencing particularly steep rises. The price of flour jumped by 43.2%, milk by 25%, eggs by 23.8%, and edible oil by 21.5%. Other notable increases included fruit and vegetable juices (16%), butter (15.5%), chocolate and cocoa (12.9%), dairy products (9.1%), and coffee (8.1%).

Some food items, however, saw price declines. Pasta products became 3.6% cheaper, margarine prices dropped by 2.9%, and processed meat products declined by 2.1%.

Services and Fuel Prices Outpace Overall Inflation

Service prices increased by 8.5% year-over-year, significantly outpacing overall inflation. The cost of postal services rose by 16.8%, while telephone and internet services were 15.0% more expensive. Rental costs climbed 11.8%, and repair and maintenance services also became costlier, with vehicle repairs up 10.3% and home maintenance 9.9% higher than a year ago.

Alcoholic beverage and tobacco prices increased by 4.9%, driven by a 5.3% rise in tobacco prices. Household energy costs remained largely stable, increasing by just 0.2%, though natural gas prices rose 1.5% and electricity costs were up 0.7%.

Motor fuel prices surged 11.8% year-over-year, contributing to the inflationary pressures.

Monthly Inflation Also Accelerates

On a monthly basis, consumer prices increased by 1.5% from December. Food prices rose 1.9%, with milk becoming 5.8% more expensive, edible oil up 5.1%, coffee increasing by 4.9%, and flour by 3.8%. The price of seasonal produce - potatoes, fresh vegetables, and fruit - rose by 4.4%.

Service costs climbed 2.2% in just one month, led by a 9.9% increase in telephone and internet services, a 6.0% rise in postal services, and a 2.7% increase in home maintenance costs.

Energy prices saw an overall 1.7% increase from December, with natural gas costs rising 3.7%. Meanwhile, alcoholic beverage and tobacco prices rose by 1.5%, and motor fuel prices increased by 2.7%.

However, clothing and footwear prices fell by 2.9%, reflecting the impact of seasonal sales.

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Budapest Business Journal

Hungary's largest and oldest source of business and financial news in English. Since 1992 it has presented essential information on Hungarian business life, including international analyses about the country. These days the BBJ newspaper is published every other week, while it releases daily business news online including premium paid content.

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