Hungary’s annual inflation rate was at 2.7 percent in January 2019, unchanged from the previous month and below market expectations of 2.8 percent. It remained the lowest inflation rate since April, as cost of transport fell (-0.1 percent from 1.7 percent). Also, prices eased for food & non-alcoholic beverages (3.8 percent from 4.5 percent in December); miscellaneous goods & services (2.3 percent from 3 percent) and furnishings & household equipment (1.6 percent from 1.9 percent). On the other hand, cost advanced further for alcoholic beverages & tobacco (7.3 percent from 5.4 percent) and recreation & culture (2.2 percent from 1.8 percent) and inflation was steady for housing & utilities (at 1.8 percent, the same as in December). The annual core inflation rate increased to 3.2 percent from 2.8 percent in December, hitting its highest level since January 2014. On a monthly basis, consumer prices went up 0.3 percent, after declining 0.3 percent in the prior month. Inflation Rate in Hungary averaged 8.93 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 3.20 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.