Hungary: Inflation recedes in March
Inflation dropped to 25.2% in March, following February’s 25.4%. The figure was primarily due to softer increases in prices for food and motor fuels.
Annual average inflation rose to 18.9% in March (February: 17.5%). Meanwhile, core inflation rose to 25.7% in March, from February’s 25.2%.
Finally, consumer prices increased 0.81% in March over the previous month, broadly unchanged from the 0.79% rise seen in February.
Commenting on the release, economists at ING stated:
“The risk of a persistently high inflation environment has not been averted. The very dynamic wage growth could translate into positive real wage growth in the second half of the year, which on one hand could support the economic recovery from the current technical recession. On the other hand, it risks companies regaining their price-setting power, triggering further repricing.”