High food prices driving Hungarian inflation up

Food prices were 4.9% higher in Hungary in November 2024, compared to the same month the previous year, helping to increase overall consumer prices by 3.7%, new data from KSH, the Hungarian statistics office, has found.

According to the data, consumer prices in Hungary were 0.5% higher on a month-on-month basis.

Within food, a number of categories showed a notable price increase – flour was 39.3% more expensive, milk was 16.6% more expensive, while chocolate and cocoa saw prices up 12.8%.

Other price increases were seen for fruit and vegetable juices (+11.7%), edible oils (+10.1%), eggs (+9.8%), butter (+9.7%), meals at restaurants (+7.9%) and +6.3% for non-alcoholic beverages. Alcoholic beverages were up 4.1%.

Services were 7.0% higher on a year-on-year basis, the data showed, with notable price increases for motorway usage, vehicle rental, and parking (up 10.9%), rents (up 10.9%), vehicle repairs and maintenance (up 10.5%), and public entertainment tickets (up 9.6%).

Electricity, gas, and other fuels saw a price decrease of 3.2%, meanwhile, with gas prices dropping by 6.3%, and electricity prices falling by 0.3%. In addition, consumer durable goods prices fell by 0.2%, with second-hand passenger cars dropping by 6.6% and jewellery becoming 13.8% cheaper. Read more here.

‘Inflation expected to accelerate’

Commenting on the data, Peter Virovacz and Kinga Havasi of ING Hungary said, “Looking ahead to the last month of the year, inflation is expected to accelerate further. In the absence of any significant change in developments over the next ten days, the rise in fuel prices at the end of November will tend to push up the inflation rate.

“As far as the overall picture for inflation in 2025 is concerned, the average rate could accelerate compared with this year. By how much, will largely depend on the exchange rate of the forint, wage growth and the ability of companies to pass on costs. The latter will also be an important factor in next year’s tax increases. Fundamentally, it is clear that weak demand is having a disinflationary effect, and the depreciation of the forint has not yet had its full impact on inflation, but it will.

“Our current forecast for average inflation next year is 4.2%. We expect monthly repricing to be high again at the beginning of the year.” Read more here.