Inflation remained highest in the Baltic States, but significant increases were recorded in the Netherlands (16.8%), Poland (16.4%) and the Czech Republic (15.5%). The Hungarian inflation rate (21.9%) is also among the highest in Europe, fuelled by changes to the conditions for discount household utility prices and above-average increases in food prices. The Hungarian central bank left its base rate unchanged (13%) and did not change its effective interest rate (18%) either. In an environment of high interest rates and high inflation, the public prefers premium Hungarian government bonds with a constant yield above inflation to those that offer a fixed yield.
Construction is expected to slow down in 2023
In October, inflation rose to 10.6% on average in the euro area, while it was 11.5% for the European Union as a whole. The greatest challenge in the euro area is the increase in energy prices, which have risen by 41.5% year on year.