Hungarian Inflation Hits 20.1%

2022. november 10.

bne IntelliNews

Hungarian headline inflation moved up to 21.1% in October from 20.1% in the previous month, a 26-year-high, according to the statistics office KSH. Core inflation, which excludes volatile fuel and food prices, rose from 20.7% in September to 22.3% y/y, slightly above estimates. On a monthly basis, consumer prices rose 2% on the back of surging food and energy prices. Inflation in the January-October period rose 12.7% y/y. The Hungarian National Bank (MNB) had said the October CPI "could surprise" to the upside. 

Food inflation hit a record 40% in October. Among foodstuffs, the price of eggs went up a whopping 88% in the last 12 months. Bread, milk and butter cost 71-75% more than a year ago.

The Hungarian government announced a price cap on eggs and potato on November 9 (link). The measure would reduce the price of eggs by around 25% and the price of potatoes by about 10%, shaving 0.1-0.2pp off headline inflation, cabinet chief Gergely Gulyas said at the weekly press briefing.