According to a new data release Friday by the Central Statistics Office (KSH), in Hungary, inflation skyrocketed to 25.7% year over year in January. By comparison, in December it had been 24.5%.

The jump was attributed to the tight labor market in the nation generating intense price pressures.

According to the KSH, the most price growth over the preceding year was seen among energy, food, and fuel, as January’s price growth was 2.3% month over month.

Currently, Hungary has the highest inflation in central Europe. In an effort to support the national currency, the nation’s central bank has kept its interest rates at the highest in the EU. Boosted partly by a weaker dollar, and tight monetary policy, the forint is considerably strengthened.

Average inflation in Hungary in 2022 rose to 14.5% reaching a 25-year high. In December the Hungarian National Bank’s outlook predicted that in 2023 average inflation may rise even higher possibly slowing only beginning in the middle of the year.

Hungarians reduced their spending in December, with retail sales data released earlier in February showing that inflation has severely impacted spending power.

In January, food prices rose 44% year over year, as energy prices for households rose 52.4%, following the government cutting subsidies for utility bills last year. Fuel prices rose 35.9% after Budapest dropped a price-cap it had imposed for a year, due to a supply shortage. Consumer durables saw prices rise by 13.5% as services were up 11.3%.