Budapest's Inflation Decreases: Consumer Prices Remain Stable

Published: December 08 2023

The inflation rate in Budapest has decreased, resulting in stable consumer prices. This article provides an overview of the current state of consumer prices and its impact on the economy.

In November 2023, consumer prices were on average 7.9% higher than the previous year. However, compared to October, prices remained relatively stable. Food prices increased by 7.1% over the year, with a significant increase of 49.7% in the price of sugar. On the other hand, household energy prices decreased by 18.1%, including a reduction of 36.2% in piped gas prices. The price of durable consumer goods fell by 0.4%, with a notable decline of 9.5% in the cost of second-hand cars, while services became 12.6% more expensive.

The recent slowdown in inflation has had a positive impact on the economy, preserving real wages in Hungary despite a decline in Europe. The decrease in domestic inflation has also contributed to the improvement in real wages.

In addition to the overall decrease in energy prices, there has been a recent announcement of a drop in petrol prices. This news brings further relief to consumers.

In response to the inflation slowdown, the Monetary Council has decided to cut the base interest rate. This policy measure aims to further stimulate the economy and support financial stability.

Sources: hirado.hu, oeconomus.hu

=== What was the inflation rate in November 2023 compared to a year earlier in Budapest? Consumer prices in Budapest were 7.9% higher on average in November 2023 compared to a year earlier.

How much did food prices rise in a year in Budapest? Food prices in Budapest rose by 7.1% in a year.

Which specific food item experienced a significant increase in price in Budapest? In Budapest, sugar experienced a significant increase of 49.7% in price.

Did household energy become cheaper or more expensive in Budapest? In Budapest, household energy became 18.1% cheaper.

What were the changes in piped gas prices and electricity costs in Budapest? In Budapest, piped gas prices decreased by 36.2% and electricity costs decreased by 3.5%.

Were consumer goods cheaper or more expensive in Budapest? In Budapest, the price of durable consumer goods fell by 0.4%.

What was the change in the cost of second-hand cars in Budapest? In Budapest, the cost of second-hand cars declined by 9.5%.

Did services become cheaper or more expensive in Budapest? In Budapest, services became 12.6% more expensive.

Were consumer prices in Budapest stable compared to October? Yes, consumer prices in Budapest generally remained stable compared to October.

Did food prices increase or decrease in Budapest compared to October? In Budapest, food prices increased by 0.5% on average compared to October.

Which specific food items contributed to the increase in food prices in Budapest? In Budapest, the price of seasonal products such as potatoes, fresh vegetables, and domestic and exotic fruits rose by 6.6%.

Excluding the seasonal products, did food prices change on average in Budapest? Excluding the seasonal products, food prices remained unchanged on average in Budapest.