Hungary Inflation Remains Unchanged in August
(MENAFN) Hungary's inflation rate remained steady in August, with consumer prices climbing 4.3% year-on-year, matching July’s pace, according to data released Tuesday by the Central Statistical Office (KSH).
Food costs posted a 5.9% increase compared to August 2024. Sharp price spikes were seen in eggs, up 19.9%, coffee, which rose 18.5%, and chocolate and cocoa, both up 18.3%. Seasonal fruits and vegetables surged 17.1%, while prices for margarine, flour, and sugar dropped by double digits.
Energy prices jumped 11%, mainly fueled by a 23.2% spike in natural gas. Service sector costs rose 5.4%, led by higher rents and vehicle maintenance expenses.
In a statement, the Ministry for National Economy credited government-imposed price caps for cutting average prices by 26.5% in drugstores and 20% in food stores, which they said shaved 1.6 percentage points off the overall inflation rate.
Janos Nagy, macro analyst at Erste Bank, said the latest inflation data matched expectations, pointing to a modest decline in core inflation, which eased to 3.9 percent.
He also indicated that inflationary pressures could intensify in the months ahead due to pre-election government spending, with projections showing the annual rate likely to stay between 4 and 5 percent through year-end.
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