Hungary’s budget deficit brutal high, inflation skyrocketing
Hungary’s cash flow-based budget deficit, excluding local councils, was 2,292 billion forints (EUR 6.39bn) at the end of September, widening on stimulus measures, the finance ministry said in a preliminary reading of data on Friday.
The central budget ran a 2066.7 billion forint deficit at the end of September, the social insurance funds were 253.9 billion forints in the red, and the separate state funds had a 28.6 billion forint surplus, the ministry said.
Meanwhile, Hungarian inflation was an annual 5.5 percent in September, the Central Statistical Office (KSH) said on Friday. CPI was driven by higher cigarette, spirits and vehicle fuel prices, with spirits and tobacco prices rising 11.2 percent, lifted by a 17.8 percent increase in tobacco prices. Prices in the category of goods that includes vehicle fuel grew by 9.8 percent, as vehicle fuel prices jumped 21.6 percent.
Food prices were up by 4.4 percent,
household energy prices edged 0.6 percent higher, consumer durable prices rose by 5.1 percent and clothing prices increased by 0.5 percent. Service prices rose by 3.2 percent. Core inflation, which excludes volatile food and fuel prices, was an annual 4.0 percent in September. CPI calculated with a basket of goods and services used by pensioners stood at 5.0 percent.
In a month-on-month comparison, inflation was 0.2 percent.
Hungary’s export growth slowed further in August as shutdowns because of supply chain interruptions caused output of the automotive industry to fall, a first reading of data released by the Central Statistical Office (KSH) on Friday shows. Exports rose by an annual 5.2 percent to 8.404 billion euros. The pace of growth was halved from July. Imports climbed 16.0 percent to 8.871 billion euros,
giving Hungary a rare trade deficit of 467 million euros.
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