The Central Statistics Office of Hungary (KSH) reported that Hungary registered a staggering 24.5% year-on-year inflation in December, the highest in the European Union (EU). In the same month, food and energy sources saw a rise of 44.8% and 55.5%, respectively.
The average inflation rate throughout 2022 was 14.5%, the highest since 1998. Food inflation stood at 26%. In December compared to 2021, firewood prices surged as much as 58.6% while piped gas and electricity rose by 97.8% and 27.8%, respectively.
Hungary’s inflation exceeds that of Lativa (20.7%), Lithuania (20%) and Estonia (17.5%) in the EU.The Hungarian government has introduced a maximum price for various food products in order to control inflationary pressure. Last November the Government decided to eliminate the fuel price cap that is reflected in the increased inflation.
The Executive plans to keep the food prices ceiling in place until at least May. Analysts suggest that this will only further lengthen and deepen inflation. (EFE).