Hungary's annual inflation rate eased to 3.3 percent in July of 2019 from 3.4 percent in the previous month and in line with market expectations. It was the lowest rate since February, as transport cost declined (-1.1 percent vs 0.5 percent in June) while recreation & culture prices went up at a softer pace (1.6 percent vs 2.6 percent). Meanwhile, cost advanced faster for food & non-alcoholic beverages (5.8 percent vs 5.6 percent); alcoholic beverages & tobacco (8.9 percent vs 7.3 percent); miscellaneous goods & services (2.6 percent vs 2.3 percent) and health (3.9 percent vs 3.8 percent) while inflation was steady for housing & utilities (at 2.3 percent); furniture & household equipment (at 2.5 percent) and restaurants & hotels (at 6.4 percent). Meantime, core inflation edged down to 3.7 percent, its lowest level since February, from 3.8 percent in the prior month. On a monthly basis, consumer prices increased 0.2 percent, after a 0.2 percent drop in June. Inflation Rate in Hungary averaged 8.83 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 3.10 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 3.00 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.