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Should we be happy? Hungarian inflation below 8%
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Consumer prices in Hungary were 7.9 percent higher in November than in the same month a year earlier, the Central Statistical Office (KSH) said on Friday.
Month on Month, prices were flat, though the price of vehicle fuels fell by 3.6 percent.
Food prices rose by 7.1 percent, slowing from a 10.4 percent increase in the previous month. Household energy prices fell by 18.1 percent, albeit from a high base. Gas prices were 36.2 percent lower and electricity prices declined by 3.5 percent.
Prices in the category of goods that includes vehicle fuel rose by 14 percent. Motor fuel prices increased by 25.4 percent.
Harmonised CPI, calculated for better comparison with other European Union member states, was 7.7 percent.
Core inflation, which excludes volatile fuel and food prices, was 9.1 percent.
Commenting on the data, Marton Nagy, the economic development minister, said the government had fulfilled its commitment to push inflation into single digits by October, two months ahead of year-end as originally expected. Inflation, he said, fell below 8 percent in November, helping families and the economy.
Read this more objective overview. Gotta love that the paper indicates that inflation “is bound to return to single digits in the next months, due to base effects, lower commodity prices and weak consumer demand” – with our Politicians claim victory for said inflation reduction, crowing “the efficacy of our Government”.
https://economy-finance.ec.europa.eu/economic-surveillance-eu-economies/hungary/economic-forecast-hungary_en
And can someone translate for me Mr. Nagy´s blurb” the purchase value of real wages has also started to grow”? I think it is fair to say everyone´s wages and savings actually shrank, significantly, in the past year?
Little reminder – core inflation is still at 9.1 percent. Meanwhile, the core inflation rate in the Euro Area, eased to 3.6 percent in November 2023, its lowest since April 2022 and below forecasts of 3.9 percent. So “doin´ great” is relative.