Inflation in Hungary remains among Europe’s top 3 despite unorthodox Orbán cabinet measures

Despite the Hungarian government’s desperate measures to curb inflation, price increases in Hungary remained among the top three in Europe in May. According to Eurostat’s latest data, inflation was higher only in Romania and Estonia among EU member states.

According to Portfólió, a Hungarian economy-focused media outlet, the European Union’s statistical office, Eurostat, released profoundly disheartening data about Hungary’s inflation. The news outlet believes that without the Hungarian government’s intervention, inflation in Hungary would have been the highest in Europe, rather than the third highest in May.

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In the Eurozone, inflation decreased to 1.9% from 2.2%, while in the EU it stood at 2.2% after April’s 2.4%. This means that, in the Eurozone, inflation fell below the European Central Bank’s 2% target for the first time since last September.

Eurostat recorded the highest inflation in Romania (5.4%), driven by the weakening of its national currency, the RON. Estonia ranked second with 4.6%, while Hungary closely followed the Baltic state with 4.5%. Slovakia and Croatia were next, while Cyprus was at the bottom of the list with almost 0%.

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According to Portfólió, without the government’s strict profit caps—imposed to curb inflation and reduce the prices of certain food and non-food items—real inflation would be around 6%.