Published: December 12 2023
The inflation rate in Budapest has dropped below 8%, with fluctuations in the prices of goods and energy costs. This article provides an overview of the key details and highlights from the price analysis report.
Food Price Trends
Food prices in Budapest saw a slight increase of 7.1%, indicating a slowdown compared to the previous month's 10.4% increase.
Household Energy Prices
Household energy prices experienced a significant decrease of 18.1%. Gas prices went down by 36.2%, while electricity prices declined by 3.5%.
Goods and Vehicle Fuel Prices
Prices in the category of goods that includes vehicle fuel rose by 14%. Specifically, motor fuel prices increased by 25.4%.
Harmonised CPI and Core Inflation Rates
The harmonised CPI, calculated for better comparison with other EU member states, was recorded at 7.7%. Core inflation, which excludes volatile fuel and food prices, stood at 9.1%.
Government Measures and Commentary
The economic development minister, Márton Nagy, highlighted the government's commitment to pushing inflation into single digits by October. In November, the inflation rate fell below 8%, benefiting both families and the economy. He also mentioned that the government's targeted measures have been effective in curbing price increases. Furthermore, the government plans to extend mandatory price caps on basic foods until July 1 and expand the monitoring of goods to include lactose and gluten free products, beef, and duck.
Overall, Hungary's economy shows promising signs of returning to its earlier growth path, with strong economic growth in the third quarter and an increase in real wages' purchase value.
Questions & Answers
=== What was the inflation rate in Budapest? In Budapest, the inflation rate dropped below 8%.
What caused the decrease in inflation in Budapest? The decrease in inflation in Budapest was primarily due to lower household energy prices and a slower increase in food prices.
What is the Harmonised CPI? The Harmonised CPI is a measure of inflation that is calculated in a way that allows for better comparison with other European Union member states. In Budapest, the Harmonised CPI was 7.7%.
What is core inflation? Core inflation is a measure of inflation that excludes volatile fuel and food prices. In Budapest, the core inflation rate was 9.1%.
What measures has the Hungarian government taken to curb price increases? To curb price increases, the Hungarian government has implemented mandatory price caps on basic foods until July 1. They are also monitoring the price of basic foodstuffs and plan to increase the number of monitored goods.
What goods are included in the monitored goods list? The monitored goods list in Budapest includes lactose and gluten-free goods, beef, and duck.
What do other indicators suggest about Hungary's economy? Other indicators suggest that Hungary's economy may return to its earlier growth path next year. Economic growth in the third quarter was one of the fastest in Europe, and the purchase value of real wages has also started to grow.