Hungary: Inflation hits over one-year high in May
June 8, 2018
Consumer prices rose 0.6% month-on-month in May, coming in slightly below the 0.7% jump observed in April. May’s print was largely driven by higher prices for food—especially of seasonal food items—and clothing and footwear.
Inflation accelerated from 2.3% in April to an over one-year high of 2.8% in May, approaching the middle 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 May ticked up from 2.2% in April to 2.3%.
Core consumer prices, which exclude volatile items such as fresh food and fuel, increased 0.2% month-on-month in May, down significantly from April’s strong 0.6% increase. Lastly, core inflation inched down from April’s 2.5% to 2.4% in May.
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%.