Hungary: Inflation hits over five-year high in July
August 8, 2018
Consumer prices rose 0.3% month-on-month in July, matching June’s print. July’s increase was largely driven by higher prices for food, and alcoholic beverages and tobacco.
Inflation accelerated from 3.1% in June to a fresh over five-year high of 3.4% in July, moving further above the midpoint of the Central Bank’s target range of 3.0% plus or minus 1.0 percentage point. February was the only month since June 2017 in which inflation fell outside the target band. Annual average inflation in July, meanwhile, ticked up to 2.5% from June’s 2.4%.
Core consumer prices, which exclude volatile items such as fresh food and fuel, increased 0.4% month-on-month in July, up marginally from June’s 0.3% increase. Lastly, core inflation inched up from 2.4% in June to 2.5% in July.
Hungary Inflation Forecast
FocusEconomics panelists see inflation averaging 2.4% in 2018, which is down 0.1 percentage points from last month’s projection. For 2019, the panel expects inflation to rise to 2.7%.