Annual inflation in Hungary almost in double digits in April
Consumer prices in Hungary grew by an annual 9.5 percent in April, up from 8.5 percent in the previous month, the Central Statistical Office (KSH) said on Tuesday.
Food prices rose by 15.6 percent as the price of bread and poultry both jumped by 29.5 percent and dairy products prices climbed 22.5 percent.
Prices in the category of goods that include vehicle fuel rose by 10 percent, with vehicle fuel prices up 12.7 percent.
Prices of spirits and tobacco products increased by 5 percent.
Harmonised CPI adjusted for better comparison with other European Union member states was 9.6 percent, while core inflation, which excludes volatile fuel and food prices, was 10.3 percent.
CPI calculated with a basket of goods and services used by pensioners was 9.3 percent.
Month on month, inflation was 1.6 percent.
Analysts told MTI after the data release that the price shock related to the war in Ukraine turned up April rather than March, when inflation came in lower than expected, and April’s jump came as a big surprise. Analysts now expect higher and more persistent inflation compared with their previous forecasts.
Péter Virovácz of ING Bank said the April shock came on the back of broad and growing inflationary pressures linked mainly to geopolitical events and movements on the global market. Inflation is likely to strengthen further, and the headline rate may soon enter into double digits, he said, even with price caps in place. Inflation may peak above 11 percent in the third quarter, he added.
János Nagy of Erste Bank said the April figure as “sobering”, reflecting inflationary effects of the war and the greater vulnerability of the forint. The labour market is still tight with resultant huge wage pressures. Nagy also noted the fiscal expansion in recent months and higher-than-expected oil prices.
Gergely Suppán of Magyar Bankholding said inflation could easily reach 14-15 percent without the government-mandated price caps. Magyar Bankholding has raised its inflation forecast to approaching 9 percent for the full year, though inflation may be even higher due to raw materials shortages and other global squeezes, he said.
Hungary’s central bank (NBH) said in a monthly analysis after the data release that the increase in headline inflation was mainly driven by higher prices for core inflation items, but acknowledged that vehicle fuel prices contributed 1.4 percentage point to CPI.
The NBH’s measure of core inflation excluding indirect tax effects — a bellwether of underlying inflation — rose to 10.3 percent in April from 9.1 percent in the previous month.
The central bank’s indicator for demand-sensitive inflation, which excludes processed foods from core inflation, increased to 8.8 percent from 7.9 percent.
The NBH said the indicators measuring households’ inflation expectations “showed unusually high volatility”, rising in April and standing over the central bank target range.
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Source: MTI
It has been known – the FABRICATION of Truth, that has been, continues to come out of the Fidesz Party / Government of Hungary, under the Leadership of – Victor Orban.
The Economic & Financial status of Hungary, is of a DOWNWARD trending Economy.
Sustanability of the Economy, when ALL Major componentry used GLOBALLY to access a countrys – present, immediate & short term and FUTURE – give clear precise indication, that Hungary – are a country with an Economy – in SERIOUS Trouble.
The inflation Government released figure, just one example, that for the past (6) six months – has been grossly under stated from the Hungarian Government, every month by some 2.5 % – from its ACTUAL up-ward movement.
The ZENITH of the impact with continuing HIGH growing Inflation in Hungary – is distanced from being Witnessed.
WHAT is going to STABILIZE the Hungarian economy, that is likened to being in a free – falling downward TREND – Motion ???
The pockets of WHO will PAY – for this extremley BEARISH – BLEAK – future outlook for the Economy of Hungary ???
Answer – the Citizens, through there Taxes.
The vote of the population, at the recent held National Elections in Hungary – voted the return to office, the Fidesz Party under it’s Leader and present Prime Minister of Hungary – Victor Orban.
Those within the population of Hungary who voted to return this Government to office – remember this, that by YOUR Vote – you TAKE :
(1) – Ownership of the Future of Hungary – whatever direction that takes.
(2) – by YOUR Vote – you are ACCOUNTABLE – for the Future of Hungary – whatever direction that may take.
(3) – By Your Vote – you take Responsibility – for whatever the Future of Hungary may take or be TAKEN.
Challenging deepening un-certain broadsheet Economic & Financial times – we FACTUALLY – are in Hungary.