According to Minister of Economic Development Marton Nagy, Hungary's inflation could peak at an annualised rate of 25%-27% in January or February. Overall inflation in 2023 could come in at 15%-16%, Nagy stated at a Budapest conference.
The inflation spike is currently posing a challenge to PM Viktor Orban's government, which on Tuesday extended existing price caps on basic foodstuffs including milk, sugar, flour, vegetable oil, eggs and potatoes until April 30.
Price growth also poses a challenge to the National Bank of Hungary, which was forced to ramp up interest rates in October to stem sharp losses in the forint currency despite an economic slowdown. Hungarian headline inflation rose to an annual 22.5% in November from 21.1% in October, boosted by surging food and energy prices, and was expected to rise further as the government scrapped a fuel price cap earlier this month.
Source: reuters.com