Inflation in Hungary
Hungary - Inflation
Inflation comes in at highest level since October 2012 in September
Consumer prices increased 0.20% over the previous month in September, stable from August's reading. September’s rise came on the back of higher prices for food, clothing and footwear and consumer durables.
Inflation increased to 5.5% in September, following August’s 4.9%. September's reading represented the highest inflation rate since October 2012. Meanwhile, the trend pointed up slightly, with annual average inflation coming in at 4.0% in September (August: 3.9%). Lastly, core inflation rose to 4.0% in September, from August’s 3.6%.
Commenting on the release, Peter Virovacz, Hungary senior economist at ING, stated:
“The September inflation reading was in line with the market consensus, but it is higher than the NBH's forecast published in September (5.5% vs 5.2-5.3%). As a result, we see an increased risk that inflation over 2021-2022 will be higher than outlined in the September Inflation Report. This would also mean further delays in reaching the inflation target without changing the central bank’s underlying rate hike path. According to the latest official communication, the rate hike cycle will continue in the next couple of months with 15bp steps. However, today’s data may force the NBH to change tempo again, this time increasing it. A stronger rate hike might be needed to anchor inflation expectations and to avoid second-round effects.”
FocusEconomics panelists see inflation averaging 4.3% in 2021, which is up 0.2 percentage points from last month’s projection. For 2022, the panel sees inflation averaging 3.4%, which is unchanged from last month’s estimate.
Hungary - Inflation Data
|Inflation Rate (CPI, annual variation in %)||-0.1||0.4||2.4||2.8||3.4|
5 years of economic forecasts for more than 30 economic indicators.
Hungary Inflation Chart
Source: Hungarian Central Statistical Office (KSH).
|Bond Yield||2.08||0.0 %||Dec 31|
|Exchange Rate||295.1||-0.68 %||Jan 01|
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October 9, 2021
Consumer prices increased 0.20% over the previous month in September, stable from August's reading.
October 7, 2021
Industrial output expanded 0.6% year-on-year in August (July: +10.2% yoy), according to a first estimate.
September 28, 2021
The GKI economic sentiment index, a composite indicator, edged up to minus 0.5 in September from minus 0.6 in August, the best result since November 2019.
September 22, 2021
At its 21 September meeting, the Monetary Council of the Hungarian National Bank (MNB) decided to raise its base rate to 1.65% from 1.50%, marking the fourth consecutive increase.
September 8, 2021
Industrial output grew at a notably softer rate of 10.2% in annual terms in July, following June’s 18.2% jump, according to a preliminary estimate.