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Inflation in Hungary remains at its highest level in 14 years as cost pressures continue

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Inflation in Hungary continued to put pressure on central banks and governments scrambling to ease the burden on consumers and businesses, and continued to grow at the fastest pace in almost 14 years.

Budapest-based Statistics Bureau reported Friday that consumer prices rose 7.4% year-on-year, above the median estimated by Bloomberg’s survey of 7.2%. Prices have risen 0.3% since November. The average inflation rate in 2021 was 5.1%.

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Inflation could not slow down, even though the central bank predicted that inflation would peak in November. Data printing could continue to put pressure on central banks, even after the central bank has raised its cumulative 220 basis points, one of the most aggressive monetary tightening campaigns in the European Union since mid-November.

Policy makers have left the effective base interest rate unchanged for the past two weeks, surpassing all currencies during that period, after the forint rose 4% year-to-date.

Spiral inflation has also become the theme of the pre-election political campaign on April 3, and Prime Minister Olburn’s government has been frozen. Mortgage rates Maximum price of staple food, fuel and utility.

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Oban’s economic adviser Merton Nagy told the Bilaggazdasag news website Thursday that the government is moving to reduce fuel, utility and food prices by up to 2.5 percent from the consumer price index, but 2022. He said price increases in the year could average around 5 percent.Core inflation (a gauge that removes prices for volatile items such as energy and food) could rise further by 2022 compared to the central bank’s medium-term target of 3%, perhaps 6% during the summer. Peter Virovacz Virovacz of ING Bank Hungary said it could rise; core inflation was 6.4% annually in December

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Inflation in Hungary remains at its highest level in 14 years as cost pressures continue

https://financialpost.com/pmn/business-pmn/hungary-inflation-stays-at-14-year-high-as-cost-pressures-remain Inflation in Hungary remains at its highest level in 14 years as cost pressures continue

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