Recent analysis: inflation jumped to 15.6%, food prices increased more than expected
Inflation rose close to expectations to 15.6% in August due to the very wide price increase. The rising price pressure is reflected by the fact that core inflation jumped very sharply to 19%, which far exceeded expectations. The surprise was caused by the higher-than-expected increase in the prices of food and other consumer goods and services.

Core inflation far exceeded expectations
Inflation that is much higher than expected, the substantial weakening of the forint, the public health product tax and the increase in the excise tax on tobacco products and alcoholic beverages, continued repricing due to the sharp departure of raw materials and energy costs in many product lines, primarily food, and the partial lifting of the freeze on household energy prices, We are raising this year’s and next year’s average inflation expectations to 13.4% and 11.9%. Inflation could be increased by another 4-5 percentage points if the price restrictions on certain foods and fuels are completely abolished, which could result in an average inflation of 14.3% this year and 14% next year. However, the abolition of price restrictions could also lead to a faster decrease in inflation (admittedly, from a much higher level), if the price of the affected products falls.
The Russian-Ukrainian war, as well as the sanctions against Russia, and partly as a result of the decreasing Russian gas deliveries, significantly override the inflationary – and economic – prospects, the effects of which cannot be fully estimated anymore. Since the outbreak of the war, gas, electricity, and oil prices have skyrocketed, which had already caused serious difficulties for the actors of economic life, and inflation will be further increased in the coming months by the increase in household energy prices above average consumption.
Related news
GKI Analysis: The GKI business climate index remained unchanged in June, but companies’ inflation expectations decreased further
According to a survey by GKI Economic Research Ltd. –…
Read more >K&H: financial security? the picture is very mixed
26 percent of middle-aged Hungarians have an income of 589…
Read more >Foreign direct investment in Central, Eastern and Southeastern Europe fell by a quarter last year
Foreign direct investment in Central, Eastern and South-Eastern Europe fell…
Read more >Related news
GKI Analysis: The GKI business climate index remained unchanged in June, but companies’ inflation expectations decreased further
According to a survey by GKI Economic Research Ltd. –…
Read more >An unusual competition could create the shopping experience of the future
Registration is now open for Hungary’s first shopping mall hackathon.…
Read more >Croatian real estate fever subsides: investors are looking for new targets
The Croatian coast has been unwaveringly popular among Czech holiday…
Read more >