Márton Nagy: For the first time since November 2020, inflation has decreased “visible” on a monthly basis

By: Trademagazin Date: 2023. 06. 08. 12:53

Inflation decreased noticeably on a monthly basis for the first time since November 2020, according to the data released by the Central Statistical Office (KSH), as highlighted by Minister of Economic Development Márton Nagy, as reported in a statement by the Ministry of Economic Development (GFM) on Thursday.

The KSH announced on Thursday that the inflation rate decreased to 21.5 percent in May 2023 on an annual basis, representing a reduction of over 4 percentage points compared to the peak in January and a decrease of 2.5 percentage points compared to the most recent data in April.

The minister explained that for the first time since November 2020, inflation also decreased compared to the previous month (by an average of 0.4 percent). This indicates that the moderation of consumer prices is becoming more dynamic, and government measures are proving effective.

Nagy Márton specifically emphasized that food inflation decreased significantly, by nearly 4.5 percentage points compared to the annual average, based on the April data. Meanwhile, on a monthly basis, the prices of cheese decreased by 2.3 percent, rice by 1.7 percent, and poultry by 0.6 percent. There was also a reduction in household energy prices, with a 6.4 percent decrease in the cost of natural gas. The data confirmed that thanks to government measures, the slowdown in inflation is becoming more pronounced and will continue to accelerate in the second half of the year, as stated in the press release.

Nagy Márton emphasized that despite the challenges posed by war and misguided sanctions, the government is doing everything it can to protect families, pensioners, and jobs. Fighting inflation is one of the government’s major commitments, and it is certain that the inflation caused by sanctions will become a single-digit figure by the end of the year.

This process is reinforced by the mandatory price reductions introduced in retail trade on June 1, as well as the introduction of an online price monitoring system starting on July 1. Thanks to these measures, consumers already have access to a discounted food basket consisting of 20 products, and starting from July, the most favorable consumer prices will be available daily for 60 product categories. The minister explained that increased competition, as a result of these measures, is increasingly restraining inflation, as stated by the GFM.