The annual increase in food prices accelerated from 3.7% in the previous month to 4.4%, in spirits and tobacco from 10.5% to 11.2%, in durable consumer goods from 4.4% to 5.1%, in energy from 0.4% to 0.6%, in other goods and fuels from 9.2% to 9.8%, and in services from 2.8% to 3.2%. The inflation rate for clothing was also 0.5% this month. To bring inflation back in line with the central bank’s target, the Monetary Council of the Magyar Nemzeti Bank raised the base rate again by 15 basis points to 1.8% at its October meeting.
Consumer prices increased by 5.5% in September
Several specific factors have contributed to the rise in inflation, such as the rise in oil prices, the increase in excise duties on tobacco products at the beginning of the year, high demand and price increases following the reopening of the economy. Given the regulated prices, the increase in energy prices is not directly reflected in consumer prices.
In August 2021, retail sales increased by 4.1% compared to the same period of the previous year, while it increased by 0.5% relative to the previous month.