Hungary’s consumer prices edge down 0.1% y/y in April, defying expectations for slight growth

By bne IntelliNews May 14, 2014

Hungary's consumer prices edged down by 0.1% y/y in April 2014, after rising by 0.1% the month before, data by the statistics office showed. This is the first time the country posts a negative inflation rate. The reading came as a surprise for the market, which expected a 0.2% y/y growth in April. On a monthly basis, consumer prices in the country ticked higher by 0.1%, following a 0.2% m/m hike in March.

As in the previous months, the reading in April was largely due to the government's decision in November 2013 to cut utility prices resulting in a 10.3% y/y drop in prices of electricity, gas and other fuels. Food prices dropped by 0.5% y/y in April, deepening from a 0.1% y/y decrease in the previous month. Similarly, prices of clothing and footwear dropped by 1.4% y/y, after falling 0.4% y/y in March. Prices of consumer durable goods extended their downward trend, falling by 0.5% on the year in April, reflecting continued weak household demand. Prices of motor fuels decreased by 0.6% y/y.

On the other hand, prices of alcohol beverages and tobacco products rose by 7.3% y/y, easing from a 7.9% y/y hike in March. Costs of services advanced by 1.6% y/y in April, slower that the 1.8% y/y increase a month earlier.

Consumer prices, % y/y
	Mar-13	Dec-13	Jan-14	Feb-14	Mar-14	Apr-14
TOTAL	2.8	0.4	0.0	0.1	0.1	-0.1
Food	4.1	0.1	-0.2	0.0	-0.1	-0.5
Alcoholic beverages, tobacco	14.8	12.0	10.5	8.1	7.9	7.3
Clothing and Footwear	-0.4	-1.1	-0.4	-0.2	-0.4	-1.4
Consumer durable goods	-2.3	-1.6	-0.8	-0.6	-0.2	-0.5
Electricity, gas and other fuels	-7.7	-17.7	-16.9	-10.3	10.0	10.3
Other goods incl. motor fuels and lubricants	2.6	0.9	-0.6	-1.5	-1.1	-0.6
Services	3.5	3.7	3.1	2.1	1.8	1.6
Source: KSH

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Hungary’s consumer prices edge down 0.1% y/y in April, defying expectations for slight growth

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Hungary’s consumer prices edge down 0.1% y/y in April, defying expectations for slight growth

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