Analysts see Hungary’s July inflation accelerating to 2.1% on fuel prices.

By bne IntelliNews August 12, 2013

Hungary’s inflation speeded up to 2.1% y/y in July 2013 from 1.9% in June driven by fuel prices, analysts polled by said.

The annual consumer price growth speeded up to 1.9% y/y in June from 1.8% y/y in May and a record low of 1.7% y/y in April. The lower inflation observed in 2013 was partly determined by the government’s move to cut retail electricity, natural gas and district heating tariffs by 10% as of the beginning of 2013. The authorities plan to introduce a 10% cut in the prices of electricity and gas for households in October 2013, which is expected to push the headline inflation to below 2% y/y.

According to market consensus, the consumer price growth will ease to 1.8% y/y in December 2013.

Related Articles

Finland gives final nod to construction of Nord Stream II

Finland has issued a second and final permit for the construction of the controversial Nord Stream II pipeline that is to pump gas from Russia directly to Germany via a Baltic Sea route, the Regional ... more

Lufthansa's arrival lifts economy of Hungary's second city

Three large German companies have chosen to invest in Debrecen, Hungary's second-largest city, since Lufthansa launched its first direct flight two years ago, it was announced on April 11.  ... ... more

Hungarian opposition parties bet on strong election turnout as cooperation talks stall

Green opposition party Politics Can Be Different (LMP) has suspended talks with fellow opposition parties after they failed to reach a cooperation agreement ahead of the April general election.  ... more