Hungary's inflation rate climbed to 4.0 percent year-on-year in December 2019 from 3.4 percent in the previous month, above market expectations of 3.8 percent. The rate was the highest since December 2012 and remained at the top of the central bank's inflation target range, mainly boosted by prices of food and non-alcoholic beverages (5.7 percent vs 5.2 percent), transport (4.0 percent vs 0.1 percent); alcoholic beverages, tobacco (8.8 percent vs 8.6 percent); and recreation and culture (0.9 percent vs 0.6 percent). Core inflation edged down to 3.9 percent from 4 percent in the previous month. For 2019 full year, average headline inflation came in at 3.4 percent. Inflation Rate in Hungary averaged 8.75 percent from 1992 until 2019, reaching an all time high of 31 percent in June of 1995 and a record low of -1.40 percent in January of 2015.
Inflation Rate in Hungary is expected to be 3.40 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Hungary to stand at 3.10 in 12 months time. In the long-term, the Hungary Inflation Rate is projected to trend around 3.00 percent in 2020, according to our econometric models.