Can inflation in Hungary fall below 6% this year?

The annual consumer price index could fall below 6% by the end of the year, the disinflationary trend that started in 2023 will continue early next year and inflation will return to the central bank’s tolerance band in 2025, András Balatoni, a central bank director, said on Thursday.

At a press conference, presenting the National Bank of Hungary’s December Inflation Report, Balatoni said disciplined monetary policy, government measures to strengthen competition, muted domestic demand and the significantly lower external cost environment were the factors supporting disinflation in 2023.

In its latest quarterly inflation report, the central bank projected annual average CPI of 17.6-17.7% this year, which could fall to 4.0-5.5% in 2024 and could sustainably return to the central bank’s 3% tolerance band in 2025.

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2 Comments

  1. WHAT is annoying in Budapest, Hungary is that INFLATION is NOT under control.
    Just zone in when shopping on the NEEDS you pick off the shelf when shopping.
    NEEDS – family needs not wants but NEEDS that are a constant food item of “other” requirement of normal life family or “other”.
    The needs are still not coming down, under the PROPAGANDA continuously coming out the mouth of the Orban Government.

  2. FACT: currently, we are still the EU inflation leaders.

    Let’s see how Hungary does and continues to progress, compared to the rest of the field, shall we? The fall in inflation is in all probability a case of economic gravity and not policy. We are just more resistant than anyone else:

    https://www.statista.com/statistics/225698/monthly-inflation-rate-in-eu-countries/

    And inflation rose higher thanks to our Politicians, according to the IMF:

    https://www.imf.org/en/Publications/selected-issues-papers/Issues/2023/02/27/Drivers-of-Inflation-Hungary-530224

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