BUDAPEST, Oct.11 (Xinhua) -- Driven largely by soaring energy costs, Hungary's annual inflation rate climbed from 15.6 percent in August to 20.1 percent in September, the highest since October 1996, the country's Central Statistical Office (KSH) said here on Tuesday.
The highest year-on-year price hikes were registered for electricity, gas and other fuels. "Due to the changes in regulation on household utility prices effective from Aug. 1, the price of electricity, gas and other fuels went up by 62.1 percent," according to KSH. Gas prices rose by 121.0 percent and electricity prices by 28.9 percent.
The price caps on energy were removed by the government on Aug. 1, and now companies and institutions have to pay market prices. The change also concerns households consuming above the national average.
The government has also restricted car owners' eligibility for subsidized fuel in an attempt to ward off shortages.
The price caps on six basic food items set by the government in mid-January notwithstanding, food prices continued to soar, increasing 35.2 percent year-on-year in September. The price of bread went up 76.2 percent, dairy products cost 66.3 percent more and eggs 53.7 percent more.
"Although the inflation figure just published does not come as a surprise, it may pose an additional challenge to the central bank," the local business publication Portfolio commented.
Last month, the National Bank of Hungary (MNB) said that it was ending its cycle of interest rate hikes that started in June 2021.
According to Portfolio, the recent sharp and rapid weakening of Hungary's currency forint may fuel inflation further through projected price hikes in the coming months.
The MNB expects this year's annual inflation rate to be between 13.5 percent and 14.5 percent. ■
