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After the end of the first wave of the coronavirus epidemic and the reopens, we saw a dynamic rise in prices in Hungary, with the consumer price index peaking at 3.9% in August since the outbreak. In autumn, the rate of price increase slowed considerably as the economy slowed again, and in November it was already below the inflation target, at 2.7%. The latest data for December also shows no change, the CSO measured a price increase of 2.7% in the last month of the year.
However, core inflation, which better captures deep-seated exchange rates (excluding, for example, changes in energy prices), rose 4% in December. As shown in the graph, core inflation shows a price increase of longer duration than the main inflation index.
In 12 months compared to December 2019:
- The price of food is 4.9, including cooking oil 13.7, seasonal foods (potatoes, fresh vegetables, national and regional fresh fruits combined) 11.8, sugar 11.7, food at the place of work 10.2, Paris, the sausage rose 7.8% and flour 6.8%.
- The prices of alcoholic beverages and tobacco increased on average by 8.8%, of which tobacco products by 14.4%.
- 2.8% more for durable consumer goods,
- 4.5% less was paid for vehicle fuel.
In 2020 compared to the previous year:
- Consumer prices rose 3.3% on average,
- within this, food prices were the ones that increased the most, 7.2%.
- The price of alcoholic beverages and tobacco is 6.9,
- for 2.9 services,
- for durable consumer goods it increased by 1.4% and for domestic energy by 0.3%.
- The price of clothing did not vary on average,
- for other items, it decreased 0.9%.
- Consumer prices among retired households increased on average 3.8%.
What will the future bring?
According to analysts, by 2021, with the long-awaited recovery, price increases may accelerate and, according to analysts, inflation will be around 3.5% by the end of this year. By 2022, however, there may be a slowdown and we will again see an increase in prices near the target level, but in such a long term, of course, there is a lot of uncertainty around the forecasts.
Cover image: Getty Images
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