Hungary: Inflation hits over five-year high in September
October 9, 2018
Consumer prices rose 0.3% over the previous month in September, up from August’s 0.1% month-on-month increase. September’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 an over five-year high of 3.6% in September from 3.4% in August, 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 a five-year high of 2.6% in September from August’s 2.5%.
Core consumer prices, which exclude volatile items such as fresh food and fuel, grew 0.2% from the previous month in September, up from August’s flat reading. Lastly, core inflation inched up from 2.3% in August to 2.4% in September.
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%, which is also unchanged from last month’s projection.