BUDAPEST, July 8 (Xinhua) -- Hungary's annual inflation reached 11.7 percent in June, setting a record high since October 1998, and up from 10.7 percent in May, the country's Central Statistical Office (KSH) said on Friday.
The figure was substantially higher than the official target of 3.0 percent set by the National Bank of Hungary (MNB) but mostly met analysts' expectations of 11.5 percent.
"The highest price rises over the last 12 months were measured for food and consumer durables. In one month, consumer prices increased by 1.5 percent on average," KSH said.
Despite the price cap on six basic food items taken by the government since the middle of January, food prices in June increased by 22.1 percent in June year-on-year.
Last November, the government also capped fuel prices, a measure that will stay in force until October 1, and Prime Minister Viktor Orban said his government would seek to extend it as long as possible.
In June, motor fuel prices were 11.2 percent higher than a year earlier, and the prices of household repair and maintenance goods were up 29.6 percent.
"The causes of Hungarian inflation are still characterized by duality, on the one hand, international processes drive prices up, and energy and food prices on the world market are still particularly high," the local business journal Portfolio commented.
"At the same time, we can also see domestic factors behind the process, for example, the significant increase in the minimum wage at the beginning of the year, the Personal Income Tax refund, or the 13th month pension," Portfolio added.
According to Portfolio, the special taxes announced in June which companies are expected to pass on to consumers, and the effects of the record weakness of the local currency, the forint, compared to the euro and the U.S. dollar, also further pushed inflation high.
The MNB expects the annual inflation rate in 2022 to remain between 11 percent and 12.6 percent, while analysts predict a rate between 12 and 13 percent. ■
