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In June, Hungarian inflation was the highest in all of Europe

On Friday, the European Union’s statistical office announced, EurostatAnd it turns out that last month Hungary recorded the highest inflation rate in the entire European Union.

Hungarian inflation was 5.3 percent higher than the previous year, ahead of Poland’s second-highest inflation rate of 4.1%. Consumer prices rose by 2.2 percent in the European Union and 1.9 percent in the eurozone in June on an annual basis.




Annual growth rate of inflation in June 2021.


Graphics:

Eurostat


a Wallet According to the article, it is somewhat surprising that Hungarian inflation, which has exceeded 5 percent since May, remains high in the summer as well, because previous analysts had expected that inflationary pressures would ease in the summer after the expected jump. The 5.2 percent increase in May can be explained by the lower base and the fact that the increase in the excise tax on tobacco products also led to higher prices. In June, according to the portal, inflationary pressures from reopening are already visible, and the previously expected summer easing can be seen in the data in July.

Due to high inflation, MNB has already entered, at the end of June, for the first time in nearly 10 years raise interest rates Monetary Council. György Matolcsy said at the time that the central bank would continue its rate-raising cycle until inflation fell to around 3%.

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