Here are the latest economic figures: inflation is on the rise in Hungary, the minister calls unacceptable

Hungary’s annualised consumer price index reached 5.5pc in January, rising from 4.6pc in the previous month, data released by the Central Statistics Office (KSH) on Tuesday show.

Food prices rose 6.0pc. The price of flour jumped 43.2pc, milk prices rose 25.0pc and egg prices climbed 23.8pc, but noodle prices fell 3.6pc, margarine prices dropped 2.9pc and the price of bologna dipped 2.1pc.

Further inflation figures:

• Household energy prices edged up 0.2pc as gas prices rose 1.5pc and electricity prices increased 0.7pc.
• Consumer durable prices rose 0.8pc.
• Motor fuel prices climbed 11.8pc.
• Prices of spirits and tobacco products increased 4.9pc and clothing prices rose 1.9pc. Service prices increased 8.5pc.
• Harmonised CPI, adjusted for better comparison with other European Union member states, was 5.7pc.
• Core inflation, which excludes volatile fuel and food prices, was 5.8pc.

The CPI calculated with a basket of goods and services used by pensioners was 5.3pc, KSH said.

In a month-on-month comparison, consumer prices rose 1.5pc as food prices increased 1.9pc, service prices climbed 2.2pc and household energy prices were 1.7pc higher.

Minister Nagy: high food price inflation ‘unacceptable’

National Economy Minister Marton Nagy said high food price inflation was “unacceptable” and the government was prepared to use all means to protect families in a statement issued by his ministry after the release of the fresh data.

The government is working resolutely to keep inflation at a persistently low level and will take all steps necessary to ensure the inflation rise at the start of the year does not become lasting, the ministry said. It added that January’s high CPI was temporary, pointing to base effects and start-of-year repricing of services and some staples, such as milk and eggs.

In the interest of protecting families and pensioners, the government is tracking inflation developments closely and will, if necessary, use all means at its disposal to intervene to keep food prices under control, while also weighing new means, the ministry said. Low inflation is “indispensable” for real wage growth to continue and household purchasing power to grow, it added.

Nagy said higher milk and egg prices were an especially big burden on low- and middle-income households and noted that the ministry had talked with industry insiders earlier in January. He added that the National Commerce and Consumer Protection Authority (NKFH) is scrutinising ESL and UHT milk products and the price of eggs of various sizes to ensure fair market practices.

The ministry noted that an online price-monitoring platform showed milk prices had fallen by around 3pc in the past three weeks, a development the government was tracking to ensure prices stayed down.

As we wrote this morning, the Hungarian government may reinstate price caps in a desperate move, details HERE.

Read here for more news about inflation in Hungary

As we wrote earlier, Hungary among EU’s lowest in household material welfare.

But also the government criticises EU leadership, blames Von der Leyen for economic decline, details HERE.