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Experts: gas price to blame for inflation

Food

According to analysts, inflation in November was high because of a fall in fuel prices a year earlier and a really high price increase this year. At the same time, food prices are also rising and pushing up inflation, according to hvg.hu.

According to the Central Statistical Office (KSH), consumer prices in November were up 3.4% on average, down from 2.9% a year earlier.

Dávid Németh, a leading analyst at K&H Bank, believes that inflation in Hungary has accelerated and that the pick up in speed is mainly due to the base effect of fuels. In October last year, the price of oil dropped significantly, which also made fuel cheaper. In November 2018, the average fuel price dropped 4.7% compared to the previous month.

Péter Virovácz, senior analyst at ING Bank, commented that the November inflation acceleration is significant, but not surprising, as it is in line with the market consensus.

The strong acceleration in the inflation rate is clearly fuel-related, and due to the low base of the previous year, the annual growth rate almost fully explains the increase, hvg.hu writes.

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