Hungary: Inflation hits close to six-year high in October
November 8, 2018
Consumer prices rose 0.5% over the previous month in October, up from September’s 0.3% month-on-month increase. October’s increase was largely driven by higher prices for food; alcoholic beverages and tobacco; and clothing and footwear, owing to seasonal factors.
Inflation increased to a nearly six-year high of 3.8% in October from 3.6% in September, thus moving further above the midpoint of the Central Bank’s target range of 3.0% plus or minus 1.0 percentage point. Inflation has now remained within the target band since June 2017, except for February 2018 when it slipped slightly below the target. Annual average inflation rose to an over five-year high of 2.8% in October from September’s 2.6%.
Core consumer prices, which exclude volatile items such as fresh food and fuel, grew 0.5% from the previous month in October, up from September’s 0.2% increase. Lastly, core inflation edged up from 2.4% in September to 2.6% in October.
Hungary Inflation Forecast
FocusEconomics panelists see inflation averaging 2.7% in 2019, which is unchanged from last month’s projection. For 2020, the panel expects inflation to moderate to 2.6%.