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Hungary. Inflation in Hungary highest since 1996 – data for January 2023

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Inflation in Hungary in January 2023 amounted to 25.7 percent year-on-year from 24.5 percent in December, the local statistical office (KSH) reported. On a monthly basis, consumer prices rose by 2.3 percent.

According to the Hungarian media, inflation at the level of 25.7 percent. this is the highest result since the beginning of 1996. Hungary has the highest level of inflation among the European Union countries from November 2022.

Inflation in Hungary

The Hungarian statistical office reported that in January this year compared to January 2022, food prices increased by 44.0% on average, including bread by 80.6%, eggs by 79.4%, butter and cream by 76.6%, cheese by 76.1% percent, dairy by 75.8 percent, and flour and confectionery by 73.8 percent.

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In addition energy prices for households increased by 52.4% during the year, including gas prices by 88.6%, firewood by 58.6% and electricity by 27.7%.

“Most analysts, as well as the government, were sure that in January the inflation rate would increase compared to December,” wrote the economic weekly “HVG”. “In February, inflation may be even higher, after which it may start to fall slowly. But only slowly: the most likely scenario is that in the first half of the year we will see indicators above 20 percent and only then they will start to slow down sharply” – assessed the weekly.

When is the peak of inflation in Hungary?

At the end of January this year The Minister of Economic Development, Marton Nagy, estimated that due to the abolition of the fuel price limit at the beginning of December last year, the inflation rate in the first month of 2023 may exceed 25 percent. For comparison, in December inflation amounted to 24.5 percent. According to the minister, food prices are likely to peak in February-March.

Price caps still apply to some staple foods.

The government of Viktor Orban announced in January that its goal was to bring inflation down to single-digit levels at the end of the year and to achieve economic growth of 1.5%.

Consumer price data for February 2023 will be released on March 8.

Main photo source: MisterVlad / Shutterstock

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