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            

Related Articles

Hungarian unions in full gear for first country-wide strike at Tesco stores

Union leaders are preparing for the first country-wide strike at Tesco stores in Hungary, which has unanimous support from workers, local media reported on September 4. This is just the latest in ... more

Russian development bank IIB signs off on debut Hungarian credit facility

The Moscow-based International Investment Bank (IIB) announced on August 9 that it has signed off on its debut credit facility in Hungary. The Russian-led IIB decided around five years ... more

Central Europe’s factories remain busy despite a summer lull in PMIs

Manufacturers in Central Europe reported a step back in activity and confidence in July, purchasing managers’ indices (PMI) released by IHS Markit on August 1 showed. While, the indicators still ... more

Dismiss