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|
|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|
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