Hungary Inflation Rate Drops to 22-Month Low

Hungary Inflation Rate

Bloomberg – In November 2023, Hungary experienced a decline in its annual inflation rate, falling to 7.9% from the previous month’s 9.9%. This decrease, which was slightly below the market predictions of 8.1%, represents the lowest inflation rate since January 2022. A major contributing factor to this decrease was the reduction in prices across various sectors. For instance, food prices softened from 10.4% in October to 7.1% in November, and the cost for services decreased slightly from 13.2% to 12.6%. Similarly, there was a drop in the prices of alcoholic beverages and tobacco from 11.6% to 10.6%, and consumer durables even saw a decline in costs, moving from a 0.7% increase to a 0.4% decrease.

Hungary Inflation Rate

Hungary Inflation Rate – USDHUF 4H

Contrastingly, there was an acceleration in inflation for electricity, gas, and other fuels, which increased from 16.1% to 18.1%. The core inflation rate, which strips out volatile items such as food and energy, also showed a slowing trend, reaching 9.1% in November. This marked the first time in twenty months that the core inflation rate has been in the single digits, aligning with market expectations.

On a month-to-month basis, consumer prices remained stable in November, maintaining the same level as in October when there was a 0.1% decrease.