Economics

Hungary Inflation Soars With No End in Sight for Rate-Hike Cycle

  • Consumer prices rise by the most since 1998 as food costs soar
  • Inflation may top 20% as energy subsidies fade, economist says

A customer pays for fresh strawberries at a market stall in Lehel Market Hall in Budapest, Hungary.

Photographer: Akos Stiller/Bloomberg
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Hungarian inflation accelerated to the fastest in 24 years, offering no reprieve for a central bank that’s raised interest rates by the most in the European Union.

Consumer prices rose 13.7% in July from a year earlier, exceeding all estimates in a Bloomberg survey. Core inflation, which strips out volatile commodity prices, was even higher at 16.7%, pointing to broad-based inflationary pressures across the economy.