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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