Hungary tops EU inflation list for June

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The top 11 inflation rates in the EU were in Central and Eastern Europe (CEE) countries in June 2023, according to new data figures published by Eurostat, the EU’s official statistics office.

All of the EU member states in CEE registered inflation over the EU average of 6.4% and of the Eurozone (5.5%). The highest annual rate of 19.9% was in Hungary, almost double that of second-placed Slovakia (11.3%), which was marginally ahead of Czechia with 11.2%.

Hungarian Prime Minister’s Office head Gergely Gulyas said on Thursday that the government will deliver on its promise to cut inflation down to single digits by the end of the year.

The fourth highest inflation in the EU – and CEE alike – in June was Poland with 11%, followed by Romania (9.3%) and Estonia (9%). Next up was Croatia 8.3%, followed by Estonia’s Baltic neighbours Lithuania (8.2%) and Latvia (8.1%).

Although still above the European average, Austria had the third lowest inflation rate in CEE in June, at 7.8%, just above Bulgaria on 7.5%. The only CEE country to register lower inflation than a Western European member state was Slovenia on 6.6%, just below Germany (6.8%) and Italy (6.7%).

Overall in the EU, Eurostat announced, inflation fell to 6.4% in June 2023, down from 7.1% in May. A year earlier, the EU’s inflation rate was 9.6%.

The Eurozone annual inflation rate was 5.5%, down from 6.1% in May. A year earlier, the rate was 8.6%. The lowest annual rates were registered in Luxembourg (1%), Belgium and Spain (both 1.6%).

The euro area annual inflation rate was 5.5% in June 2023, down from 6.1% in May, Eurostat found, adding that one year earlier, the rate was 8.6%. EU annual inflation was 6.4% in June 2023, down from 7.1% in May. A year earlier, the rate was 9.6%. The lowest annual rates were registered in Luxembourg (1%), Belgium and Spain (both 1.6%).

Compared with May, annual inflation fell in 25 Member States, remained stable in 1, and rose in 1. In June, the highest contribution to the annual euro area inflation rate came from food, alcohol and tobacco (+2.35 percentage points), followed by services (+2.31 pp), non-energy industrial goods (+1.42 pp) and energy (-0.57 pp), according to the EU’s official statistics office.