Hungarians have the strongest inflation in Central Europe. The same applies to the basic interest rate, which the central bank gradually increased last year to 13 percent, which is the highest in the European Union.
In doing so, the central bank wanted to support the weak domestic currency, the forint, which has strengthened significantly since then, although it was also helped by the weaker dollar. However, inflation remains a problem and continues to rise.
Its average value last year was 14.5 percent, which is the highest in 25 years. In its December forecast, the central bank also expects this value to be even higher this year, with the year-on-year growth in consumer prices slowing significantly only in the middle of this year.
Inflation in the eurozone unexpectedly fell sharply in January
Economic
In January, food prices rose by 44 percent year-on-year, energy for households jumped by 52.4 percent. The prices of bread, eggs and butter, for example, showed sharp growth. Gas became more expensive by 88.6 percent, electricity by 27.7 percent.
Fuel prices also rose significantly (+35.9 percent). This happened after the lack of fuel supplies in the country forced Prime Minister Viktor Orbán’s government to cancel the capping of gasoline and diesel prices that had lasted more than a year in early December.
“There is even more concern that inflation in Hungary may remain at a high level,” said analyst Zoltán Varga of brokerage Equilor.
According to the APA agency, analysts expect that inflation in Hungary will remain above 20 percent in the first half of this year and will subsequently slow down significantly. Orbán predicted that inflation will fall below ten percent by the end of this year.
Inflation rose to 17.5 percent
Economic
