Surprising Twist: Hungary Loses Title of EU’s Highest Inflation
After months of leading the list of inflation in the EU, Hungary has finally been overtaken by another country, according to fresh data released by Eurostat. The latest national inflation statistics reveal that Czechia now holds the title for the highest annual inflation in the EU, surpassing Hungary in November.
For about a year, Hungary had the highest inflation in the EU, but the recent shift in leadership has put Czechia at the top with an annual inflation rate of 8%, compared to Hungary’s 7.7%. The statistics also highlight that Central and Eastern European countries, including Slovakia, Romania, and Poland, are the weakest performers in terms of price increases. In comparison, the European Union averaged 3.1% and the eurozone averaged 2.4% in November.
The recession has played a major role in the moderation of Hungarian inflation, as the country’s Real Economic Growth Rate has been one of the weakest in the EU in recent years. While several countries have achieved an annual inflation rate below 2%, Hungary’s subdued real economic growth has acted as a mitigating factor against rapid price increases.
Monthly inflation trends also show a decline in prices in most member states, with several experiencing a reduction of over 1%. However, it’s important to consider data over multiple months as seasonal or one-off events can distort a single month’s data.
Overall, the recent data points to a shift in inflation leadership in the EU, with Hungary no longer holding the highest inflation rate. While this may come as a relief, the statistics also underline the substantial impact of inflation on Central and Eastern European countries, and the potential for an uptick in inflation early next year.
