Hungary: Inflation reaches target after 44 months in September
Latest reading: Inflation dropped to 2.9% in September, below August’s 3.4% and hitting the Central Bank’s target for the first time since early 2021. The reading was largely driven by a sharper decline in prices for transport plus softer price pressures for recreation and hospitality.
Annual average inflation fell to 4.6% in September (August: 5.4%). Meanwhile, core inflation ticked up to 4.8% in September from August’s 4.6%.
Finally, consumer prices dropped 0.09% from the previous month in September, swinging from August’s 0.01% increase. September’s result marked the sharpest fall in prices since December 2023.
Panelist insight: ING analysts Peter Virovacz and Kinga Havasi commented on the outlook:
“Looking ahead to next year, inflationary risks are on the rise: the expected pick-up in consumption, continued dynamic wage growth (especially after a possible further significant increase in the minimum wage) and the government’s tax measures are likely to be passed on to consumers in the form of price increases over the course of 2025.”