HICP in Hungary

Hungary's Harmonised Index of Consumer Prices (HICP): measures inflation using Eurostat's common methodology to allow comparison across the EU. It is published by the Hungarian Central Statistical Office (KSH).

It is compiled from a basket of goods and services weighted by household spending, using the harmonised COICOP classification and a common base year. It is reported as an annual (YoY) and monthly (MoM) rate of change.

Hungary is outside the euro, so inflation is the National Bank of Hungary's (MNB) main reference for setting rates. In a country with a history of high inflation, a hot print tends to support the forint and expectations of higher rates, while a soft one opens the door to cuts.

Being harmonised, it can differ from Hungary's national CPI. For the underlying trend, watch core inflation, which excludes the more volatile energy and unprocessed food.