Hungary: Inflation rises in April
Inflation came in at 3.7% in April, up from March’s 3.6%. Looking at the details of the release, housing and energy prices dropped in April compared to the previous month, while price pressures for food and non-alcoholic beverages flatlined. Moreover, prices for transport grew at a more subdued pace.
Annual average inflation fell to 10.0% in April (March: 11.7%). Meanwhile, core inflation fell to 4.1% in April, from the previous month’s 4.4%.
Lastly, consumer prices increased 0.70% over the previous month in April, which was below the 0.79% rise seen in March.
Commenting on the outlook, ING’s Peter Virovacz and Dávid Szonyi stated:
“It is challenging to make accurate projections for the second half of the year. The Hungarian economy appears weak while labour market tightness has eased, potentially slowing the favourable wage growth process. The cautionary motive of households persists, with the gross savings rate still being at historically elevated levels. In this regard, a significant rebound in consumption is yet to be seen, and all of these factors are therefore likely to provide a headwind to inflation in the coming months.”