Inflation grows in Poland and Hungary

Poland and Hungary show signs of durable inflation rates as many companies are forced to increase their charges and growing prices which are clear indicators of economic instability. The experts highly recommend including the conditions about inflation in future contracts after Deutsche Telekom’s (DTEGn.DE) Hungarian unit reached last year’s 14.5% inflation rate across its consumer services contracts. The experts also predict a growing inflation pressure over SMBs in these countries. 

Though the January inflation reports in Poland and Hungary appeared slightly below market expectations, they are still forecast to be the European Union’s highest 2023 inflation rates based on the European Commission’s latest economic reports and analysis. 

The European Bank for Reconstruction and Development also claims in its recent report that it will take much longer to conquer the inflation rate across Europe than was expected earlier.

The situation in Hungary is more persistent and complicated than in Poland. The economy is now witnessing the rapid growth of food and service prices, which rose by an annual 11.3% in January. Hungary’s credit rating outlook was lowered to negative from stable last month.

The National Bank of Poland (NBP) did not change its primary interest rate. They remained at 6.75% last week, while the National Bank of Hungary (NBH) said a “patient approach” was required after leaving the EU’s highest benchmark on hold at 13% last month.