Hungarian inflation down but still above 20 percent

Consumer prices in Hungary rose by an annual 21.5 percent in May, the Central Statistical Office (KSH) said on Thursday.

Headline inflation fell for the fourth month in a row and at a faster pace, dropping from 24.0 percent in April. Month on month, inflation edged down by 0.4 percent.

Food prices rose by an annual 33.5 percent in May. Household energy prices increased by 37.2 percent. Gas prices rose by 49.1 percent and electricity prices grew by 27.2 percent.

The data show consumer durable prices increased by 8.1 percent. Motor fuel prices, which were capped for households until early December, increased by 17.7 percent.

Core inflation, which excludes volatile fuel and food prices, was 22.8 percent.

Commenting on the data, Economic Development Minister Márton Nagy said that in a sign that “government measures are working”, month-on-month inflation fell in May for the first time since November 2020. Noting that food prices had fallen steeper than others, Nagy said the government continued to protect families, pensioners and jobs, despite the war and “failed sanctions”.

The government is committed to pushing inflation into single digits by year-end, he said.

Hungary trade surplus EUR 308 m in April

Hungary posted a trade surplus of 308 million euros in April, the Central Statistical Office (KSH) said in a first reading of data on Thursday.
Exports rose by an annual 3.4 percent, while imports were down 4.0 percent.

Hungary’s trade balance improved by EUR 836 million. In a month-on-month comparison, exports were down 19 percent and imports 16 percent.

In absolute terms, exports came to EUR 11.5 billion and imports to 11.2 billion. Trade with other European Union member states accounted for 78 percent of exports and 68 percent of imports.

Budget deficit edges over HUF 2,763 bn in May

Hungary’s cash flow-based budget balance reached HUF 2,763.3 billion (EUR 7.5bn) at the end of May, the finance ministry said.

The central budget deficit reached HUF 2,752.4 billion at the end of May and the social security funds were 67.3 billion in the red. Separate state funds had a HUF 56.5 billion surplus.

Alone in the month of May, the deficit reached HUF 53.6 billion, the lowest May deficit in seven years, the ministry said.

Source: MTI