Hungary’s consumer price inflation speeds up to 1.4% y/y in Sept 2013, above forecast.

By bne IntelliNews October 14, 2013

Hungary's annual consumer price growth accelerated to 1.4% in September 2013 from 1.3% in August, the statistics office said. The reading was above market expectations for a 1.1% growth, according to a poll by portfolio.hu. On a monthly basis, consumer prices in the country increased by 0.5%, reversing from a 0.3% m/m drop in the previous two months.

The annual growth in food prices eased to 1.7% in September from 2.7% in August. Prices of alcohol beverages and tobacco products rose by 10.9% y/y, after a 9.1% y/y hike the month before. Costs of services advanced by 3.3% y/y in September, faster than the 2.9% y/y increase in August. Prices of motor fuels remained unchanged.

By contrast, prices in the group of electricity, gas and other fuels declined by 8.1% y/y, with costs of natural gas, electricity and purchased heat each dropping by 10% y/y. Prices of consumer durable goods extended their downward trend, falling by 1.7% on the year, reflecting continued weak household demand. Prices of clothing and footwear saw a 0.3% y/y fall.

The Hungarian central bank decided on September 24 to cut the base rate by 20bps to a new historic low of 3.60%. The Monetary Council considers that the bottom of the monetary policy easing could be at 3.00-3.50% and said that further cautious easing of monetary conditions should follow, considering the outlook for inflation and the real economy and taking into account perceptions of the risks associated with the economy. The bank also lowered its forecast for the average annual inflation in 2013 to 2% from 2.1% projected in June.

Consumer prices, % y/y              
  Jan-13 Mar-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13
TOTAL  3.7 2.2 1.8 1.9 1.8 1.3 1.4
Food 5.8 3.4 3.7 4.1 2.8 2.7 1.7
Alcoholic beverages, tobacco 13.1 11.7 9.8 8.8 8.6 9.1 10.9
Clothing and Footwear  0.8 -0.4 -0.2 -0.1 -0.2 -0.5 -0.3
Consumer durable goods -2.1 -2.2 -1.8 -1.7 -2.1 -2.2 -1.7
Electricity, gas and other fuels 2.4 -8.1 -8.5 -8.7 -8.8 -8.7 -8.1
Other goods incl. motor fuels and lubricants 1.3 1.5 -0.7 0.1 1.7 0.4 0.0
Services  3.1 3.8 4.1 4.0 3.5 2.9 3.3
Source: KSH              

Related Articles

Hungary's electric sports aircraft maker expands production

Hungary's Magnus Aircraft is constructing a new manufacturing plant in southern Hungary near the regional Pecs-Pogany airport to meet rising demand for its unique aircraft and plans to finish ... more

Gyorgy Waberer to list logistics company BILK on Budapest bourse

Gyorgy Waberer, the former owner of haulage company Waberer, plans to list shares of Budapest logistics terminal BILK on the Budapest Stock Exchange in June, local media reported on May 28. “I ... more

Hungary reaches deal with Gazprom on 2019 gas deliveries

Hungary has reached an agreement with Russian gas giant Gazprom on the volume and price of next year's gas deliveries and negotiations have begun on gas deliveries for 2020, Foreign Minister Peter ... more

Dismiss