Hungary's annual inflation rate eased to 2.7 percent in December 2018 from 3.1 percent in the previous month and below market consensus of 3 percent. It was the lowest rate since April, mainly due to a slowdown in transport inflation (1.7 percent vs 5 percent). In addition, recreation and culture prices rose at a slower pace (1.8 percent vs 2.1 percent); while inflation was unchanged for housing & utilities (at 1.8 percent) and picked up for food & non-alcoholic beverages (4.5 percent vs 4.2 percent), alcoholic beverages & tobacco (5.4 percent vs 4.7 percent), and miscellaneous goods & services (3 percent vs 2.8 percent). Meanwhile, core inflation rose to 2.8 percent, its highest level since September 2017, from 2.6 percent in November. On a monthly basis, consumer prices fell 0.3 percent in December, the same pace as in November. Inflation Rate in Hungary averaged 8.95 percent from 1992 until 2018, 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 3.20 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 3.10 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.