Inflation in Budapest: What to Expect in 2023 and 2024

Published: December 08 2023

Inflation is an important economic indicator that affects the prices of goods and services in a country. In this article, we will discuss the expected inflation rates in Budapest for the years 2023 and 2024.

In November 2023, consumer prices in Budapest increased by an average of 7.9% compared to the previous year. Overall, prices remained unchanged compared to October, with the exception of a 3.6% decrease in the price of motor fuel. Within the food category, the price of sugar saw the highest increase at 49.7%, followed by chocolate and cocoa at 19.1%. On the other hand, the prices of eggs, flour, cheese, butter, and pasta decreased by 24.4%, 15.8%, 10.4%, 9.9%, and 7.4% respectively. Household energy became cheaper by 18.1%, with natural gas seeing a decrease of 36.2% and electricity decreasing by 3.5%. However, the price of motor fuel increased by 25.4%. The cost of services increased by 12.6%, with the highest increases seen in highway tolls, car rentals, parking fees, and holiday services. The price of alcoholic beverages and tobacco increased by 10.6%, with alcoholic beverages seeing a 12.1% increase.

The expected inflation rate for 2024 in Budapest is projected to be around 5.4%. This forecast is based on the consensus among experts surveyed by Portfolio. The predictions for this year have a relatively narrow range, ranging from 17.6% to 17.9%. However, for next year, we can see a wider range of forecasts, ranging from 3.9% to 6.5%. These projections align with the inflation trajectory outlined by the National Bank of Hungary (MNB), which expects an average annual inflation rate of 17.6% to 18.1% for 2023 and 4.0% to 6.0% for 2024.

Keeping track of inflation rates is crucial for individuals and businesses to plan their financial decisions. Understanding the expected changes in prices can help individuals budget their expenses and businesses adjust their pricing strategies. As the inflation rates for 2023 and 2024 in Budapest are projected to be significant, it is important to take these forecasts into account when planning for the future.

What was the average inflation rate in Budapest in November 2023? In November 2023, the average inflation rate in Budapest was 7.9% higher than the previous year's prices.

What were the changes in the prices of food items in Hungary in November 2023? In November 2023, the price of food items in Hungary increased by 7.1%, with the highest increases seen in sugar (49.7%), chocolate and cocoa (19.1%), non-alcoholic beverages (17.9%), and snacks (17.0%). However, the price of eggs decreased by 24.4%, flour by 15.8%, cheese by 10.4%, butter and margarine by 9.9%, and pasta by 7.4%.

What happened to the price of household energy in Hungary in November 2023? The price of household energy, including gas, electricity, firewood, and bottled gas, decreased by 18.1% in Hungary in November 2023. Specifically, the price of piped gas decreased by 36.2%, electricity by 3.5%, firewood by 0.8%, and bottled gas increased by 1.9%.

How much did the price of fuel increase in Hungary in November 2023? The price of fuel increased by 25.4% in Hungary in November 2023.

What were the changes in the prices of services in Hungary in November 2023? In November 2023, the prices of services in Hungary increased by 12.6%. This included increases in highway tolls, car rentals, parking fees (20.7%), holiday services (15.8%), sports and museum tickets (14.1%), vehicle repairs and maintenance (13.8%), and reduced costs for commuting to work or school (21.7%).

What happened to the prices of alcoholic beverages and tobacco products in Hungary in November 2023? The price of alcoholic beverages and tobacco products increased by 10.6% in Hungary in November 2023, with alcoholic beverages increasing by 12.1%.

What were the changes in the prices of durable consumer goods in Hungary in November 2023? The prices of durable consumer goods decreased by 0.4% in Hungary in November 2023. This included a 9.5% decrease in the price of used cars, a 9.4% increase in the price of kitchen and other furniture, a 4.3% increase in the price of heating and cooking devices, a 3.7% increase in the price of living room furniture, and a 3.3% increase in the price of new cars.

What is the inflation forecast for 2023 in Hungary? According to consensus forecasts from experts, the median inflation forecast for 2023 in Hungary is 17.7%. However, forecasts for next year indicate an inflation rate of 5.4%. These forecasts align with the Hungarian National Bank's projections, which anticipate an average annual inflation rate of 17.6% to 18.1% for 2023 and 4.0% to 6.0% for the following year.