Inflation decreased to 25.4%
Inflation moderated to 25.4% in February after the peak of 25.7% in January, which was primarily caused by the drop in fuel prices in February, on the other hand, the price of spirits rose much more than expected, while the rise in food prices already showed a slowdown. The peak of inflation is reflected by the fact that core inflation also slowed down to a small extent, to 25.2%. Last year, consumer prices increased by an average of 14.5%.
In the coming months, due to base effects, the continuous decrease in fuel prices and price reductions announced for some food products, we expect inflation to moderate gradually and then sharply from the middle of the year, so we expect inflation to peak in January. Base effects can be strengthened by the fact that international raw material, crop and energy prices and transport costs have fallen significantly in recent months, so we do not expect any further external price shocks, and the strengthening of the forint can also moderate inflation. The formation of a price-wage spiral can be observed in some sectors, which may slow down the rate of inflation, however, we still expect single-digit inflation by the end of this year. At the same time, this year’s average annual inflation may exceed our previous expectation of 17.6%.
Related news
Margin is very much not profit
The government announced that it would introduce a margin cap…
Read more >Margin freeze versus VAT reduction: a solution to inflation or a field for political debate?
The government has been implementing a margin freeze since mid-March,…
Read more >GKI Analysis: Why are food prices constantly rising?
In recent times, the rise in the prices of basic…
Read more >Related news
Margin is very much not profit
The government announced that it would introduce a margin cap…
Read more >Margin freeze in Hungary: Who is affected and is government intervention really justified?
The Hungarian government will introduce a margin restriction on certain…
Read more >China’s retail sales skyrocket in the first two months of the year
China’s industrial output grew 5.9 percent year-on-year in the first…
Read more >