Inflation remained at a low level in August, consistent with market expectations, as noted by Minister for National Economy Márton Nagy in a statement on Tuesday assessing the latest data.
According to the most recent figures from the Central Statistical Office, inflation in August 2024 reached 3.4 per cent year-on-year. While annual inflation showed moderate and favourable development, consumer prices remained unchanged compared to the previous month, July 2024.
The statement highlighted that on an annual basis, household energy prices decreased by 4.3 per cent, including a 9.4 per cent reduction in natural gas prices and a 1.7 per cent decrease in electricity costs. Additionally, fuel prices fell by 2.9 per cent.
Food prices remained unchanged on average compared to the previous month. However, within the food category, the price of specific items such as eggs decreased by 2.3 per cent, pasta by 1.7 per cent, cold cuts such as sausages by 1.4 per cent, and seasonal foods (potatoes, fresh vegetables, and both domestic and tropical fruits) saw a 1.2 per cent price drop. These factors could positively impact consumption trends.
In his statement the Minister pointed out that the disinflation of food prices is driven by a significant decline in agricultural producer prices, suggesting that prices for certain food products may continue to fall in the coming months, further boosting demand growth.
Commenting on the data, Minister Márton Nagy reminded that the government had successfully curbed the war-related inflation surge last year, which was exacerbated by sanctions and driven by supply-side factors accounting for around 80 per cent of the increase.
To maintain low inflation, the government continues to implement targeted and effective measures, such as the online price monitoring system, which has significantly contributed to stimulating retail competition and keeping inflation under control since its launch on 1 July 2023.
The Minister emphasized that sustained low inflation provides predictability and, due to strong wage growth, results in real wage increases, benefiting both families and businesses.
The purchasing power of wages has been rising since September last year, significantly contributing to the easing of precautionary savings behaviour, strengthening consumer confidence, and consequently expanding consumption.
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