Hungary Consumer Confidence

Hungarian consumer confidence index declined 5 points to -25 in May of 2022 from -20 in the previous month, as households turned gloomier about their financial prospects amid a surge in inflation. The business confidence dropped by 5.5 points while consumer confidence plunged by 9.5 points in May, after a rise in April. The National Bank of Hungary (NBH) said that the annual inflation rate rose 9.5% in April, its highest level since June 2021, was the expected to rise further in coming months and average between 9% - 10% this year. Companies were planning price rises, albeit to a slightly less extent than in April. Customers turned more pessimistic about their financial and savings prospects in May. Since last June the NBH has hiked its base rate by 450 bps to 5.4%.