Hungary’s consumer prices edge up 0.1% y/y in February 2014, below expectations.

By bne IntelliNews March 12, 2014

Hungary's consumer prices edged up by 0.1% y/y in February 2014, after remaining flat y/y in January, the statistics office said. The reading was below market expectation for a 0.5% y/y growth. On a monthly basis, consumer prices in the country increased by 0.1% as well, slower than the 0.3% m/m rise in the previous month.

As in the previous month, the readings in February were largely due to the government's decision in November 2013 to cut utility prices resulting in a 16.9% y/y drop in prices of electricity, gas and other fuels.

Prices of consumer durable goods extended their downward trend, falling by 0.6% on the year in February, reflecting continued weak household demand. Prices of clothing and footwear dropped by 0.2% y/y in February, following a 0.7% y/y decrease in January. Prices of motor fuels decreased by 1.5% y/y. Food prices remained flat on the year in February.

On the other hand, prices of alcohol beverages and tobacco products rose by 8.1% y/y, easing from a 10.5% y/y hike in January. Costs of services advanced by 2.1% y/y in February, slower that the 3.1% y/y increase a month earlier.

Consumer prices, % y/y            
  Feb-13 Sep-13 Nov-13 Dec-13 Jan-14 Feb-14
TOTAL  2.8 1.4 0.9 0.4 0.0 0.1
Food 4.1 1.7 0.4 0.1 -0.2 0.0
Alcoholic beverages, tobacco 14.8 10.9 10.6 12.0 10.5 8.1
Clothing and Footwear  -0.4 -0.3 -1.2 -1.1 -0.4 -0.2
Consumer durable goods -2.3 -1.7 -1.8 -1.6 -0.8 -0.6
Electricity, gas and other fuels -7.7 -8.1 -10.3 -17.7 -16.9 -10.3
Other goods incl. motor fuels and lubricants 2.6 0.0 -0.4 0.9 -0.6 -1.5
Services  3.5 3.3 4.0 3.7 3.1 2.1
Source: KSH            

Related Articles

Hungary's MOL strikes licensing deals essential to $1.9bn petrochemical expansion ambitions

Hungary's MOL announced on July 20 that it has struck licensing deals with Germany's Evonik Industries and Thyssenkrupp that will be essential in its plan to roll out a $1.9bn investment in ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Hungary signs deal to link to Russia's Turkish Stream gas pipeline

Budapest has signed a deal with Russia's Gazprom to link Hungary with the under-construction Turkish Stream ... more