Inflation accelerated in Hungary, so the forint began to strengthen

Hungary’s annual consumer price index was 4.1 percent in July, the Central Statistical Office (KSH) said on Thursday. As a result, the Hungarian National Bank (MNB) is not expected to continue its base rate cut programme, so the forint strengthened.

According to portfolio.hu, experts do not expect a further base rate cut from the MNB, so the forint strengthened from almost 400/EUR to 396 today.

Month on month, consumer prices were up an average of 0.7 percent, with vehicle fuel prices rising by 3.8 percent. Food prices rose by 2.7 percent in July. Household energy prices fell by 4.5 percent. Gas prices were 9.3 percent lower and electricity prices declined by 2.1 percent. Consumer durable prices edged down 0.5 percent.

Commenting on the data, Márton Nagy, the national economy minister, said the government’s economic policy measures had proven effective in reining in inflation.

Nagy said in a statement that the online price-monitoring platform introduced last summer was generating vigorous competition among retailers and helping to keep inflation low in the long run. Not only was the platform helping to keep prices transparent, he said, but it was also allowing consumers to make informed decisions, thereby boosting long-term retail market stability and sustaining economic growth.

The minister said falling inflation, rising real wages and “the gradual lifting of cautionary measures” were helping restore domestic consumption.

Read also:

• Cargo transport in Hungary in grave danger: authorities may close key Danube bridge because it threatens lives – read more HERE
• Romania’s minimum wage rises, surpasses Hungary in EU rankings