Monthly Price Decrease Trend Identified
Inflation in Hungary has shown a decline on a monthly basis, with consumer prices dropping by 0.1% from April to May. This decrease was mainly driven by lower energy and fuel prices. On an annual basis, the Hungarian Central Statistical Office (KSH) reported inflation at 4.4%, slightly higher than the central bank’s target level.
Compared to April, prices fell by an average of 0.1% in May, with fuel prices experiencing a significant drop of 4.4%. Food prices, on the other hand, rose by 1% annually, with notable increases in sugar, chocolate, fruit and vegetable juice, pork, and restaurant meals. However, the prices of eggs, flour, dairy products, and certain other food items saw a decrease.
Services also saw a rise in prices by 9.5%, including communication services, rents, personal care services, and vehicle repair and maintenance, among others. Alcoholic beverages, tobacco products, medicines, pharmaceuticals, and household items like cleaning products and personal care products also experienced price hikes.
Household energy costs decreased by 2.4%, with gas and electricity prices down by 4.7% and 2.9% respectively. Durable consumer goods prices fell by 1.7%, while vehicle fuel prices rose by 9.2%.
Overall, despite various price fluctuations, consumer prices in Hungary fell by 0.1% on average on a monthly basis. The data suggests a mixed picture in terms of price changes across different categories, reflecting the complex dynamics of the economy.
With food prices expected to rise at a slower pace than inflation this year, consumers in Hungary may see some relief in the cost of essential goods. It will be important to monitor these trends closely to understand their impact on the overall economy.
