20 percent inflation on the way in Hungary

Inflation is soaring in Hungary. But when will it stop? The rate in August was 15.6 percent, but a lot has happened since then. September’s report is on the way and everybody is wondering whether inflation reached 20 percent.

Forbes.hu reported that most predictions point out that inflation will be around 20 percent. The question is rather about it being more or less than this value. Technically speaking, it does not make a difference, but it is an important landmark down the inflation spiral. The question is not whether this rate will be reached or not, but rather when?

Reasons behind the increase

The inflation rate is already high. In August, according to the last report, it was 15.6 percent, but things changed since then. In September, utility costs will also be added, which could mean a huge price hike. Therefore, the increased utility costs contribute a lot to inflation as well.

Portfolio.hu asked analysts about their predictions about September’s inflation rate. Of the eight analysts they asked, four predicted that inflation will surge above 20 percent. But even those who were more optimistic still said a rate only slightly lower than that.

The more important contributing factors are increased energy prices, the volatile currency, the capital’s new parking regulation, the increased price of internet and phone services. Finally, the increased food prices also had an effect.