According to the latest report of the Hungarian Central Statistical Office (KSH), consumer prices were up by 0.5 percent year-on-year in the month of November 2015. Estimates predict inflation of 0 percent for the entire year of 2015.

Currently, the value of the forint is not being threatened by rising prices in Hungary. The subdued inflationary environment has been creating a predictable business environment, facilitating the planning of investment at enterprises and safeguarding the value of wages and pensions.

November’s slight rise was the consequence of the fact that the steep fall of oil prices preceded the base period. Low oil prices continue to play a key role in price changes. According to calculations of the analysts of the Ministry for National Economy, low oil prices – and their ripple effects – will cut the full-year index by 1.2 percentage points.

The disinflationary environment prevalent within the EU’s economy also continues to dampen prices: analysts put the effect of these external factors on Hungary’s inflation rate to minus 0.8-0.9 percentage points.

In the initial eleven months of 2015, consumer prices edged down by 0.1 percent year-on-year, in line with the expectations of the Government.

(Ministry for National Economy)