Hungary’s consumer price inflation eases to 1.3% y/y in August.

By bne IntelliNews September 12, 2013

Hungary's annual consumer price growth eased to 1.3% in August 2013 from 1.8% in July, the statistics office said. The reading was below market expectations for a 1.7% growth, according to a poll by portfolio.hu. On a monthly basis, consumer prices in the country dropped by 0.3%, declining at the same pace as in the previous month.

The annual growth in food prices eased slightly to 2.7% in August from 2.8% in July. Prices of alcohol beverages and tobacco products rose by 9.1% y/y, after a 8.6% y/y hike the month before. Costs of services advanced by 2.9 % y/y in August, slower than July’s 3.5% y/y increase. Prices of motor fuels were up by 0.4% y/y in August, decelerating from a 1.7% y/y increase in the previous month.

By contrast, prices in the group of electricity, gas and other fuels declined by 8.7% y/y, with costs of natural gas decreasing by 6.1% y/y, while those of electricity and purchased heat dropping even faster - by 10% y/y. Prices of consumer durable goods extended their downward trend, dropping 2.2% on the year, reflecting continued weak household demand. Prices of clothing and footwear saw a 0.2% y/y fall.

The Hungarian central bank decided on August 27 to cut the base rate by 20bps to a new historic low of 3.80%, slowing the pace of the rate cutting cycle, as it reduced the base rate by 25bps in each of the previous twelve months. The Monetary Council considered that the bottom of the monetary policy easing could be at 3.00-3.50%. However, in our view the latest data on inflation may prompt again the 25bps cut at the next rate setting meeting scheduled for September 24.

Consumer prices, % y/y              
  Jan-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13
TOTAL  3.7 2.2 1.7 1.8 1.9 1.8 1.3
Food 5.8 3.4 3.4 3.7 4.1 2.8 2.7
Alcoholic beverages, tobacco 13.1 11.7 10.8 9.8 8.8 8.6 9.1
Clothing and Footwear  0.8 -0.4 0.4 -0.2 -0.1 -0.2 -0.5
Consumer durable goods -2.1 -2.2 -1.9 -1.8 -1.7 -2.1 -2.2
Electricity, gas and other fuels 2.4 -8.1 -8.4 -8.5 -8.7 -8.8 -8.7
Other goods incl. motor fuels and lubricants 1.3 1.5 -0.5 -0.7 0.1 1.7 0.4
Services  3.1 3.8 3.6 4.1 4.0 3.5 2.9
Source: KSH              

Related Articles

Poland isolated again as it threatens to block EU declaration

Poland will not sign the Rome Declaration if its demands for moulding the EU’s future are not reflected in the document, Prime Minister Beata Szydlo threatened on March 23. The statement could ... more

Hungarian referendum on nuclear deal with Russia rejected

The expansion of the Paks nuclear power plant will be Hungary's “biggest political error of the 21st century” claimed Bernadett Szel, leader of the small opposition party LMP, on March 22, as she ... more

Hungary finally joins the negative yield club

Hungary finally joined the negative yield club on March 21 as Government Debt Management Agency AKK  accepted a bid of -0.01% at an auction of 3-month T-bills. Hungarian yields have been on ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss