Hungary’s consumer prices flat y/y in Jan 2014, below expectations.

By bne IntelliNews February 17, 2014

Hungary's consumer prices remained unchanged y/y in January 2014, after increasing 0.4% y/y in December 2013, the statistics office said. The reading was below market expectation for a 0.2% y/y growth. On a monthly basis, consumer prices in the country increased by 0.3%, reversing from a monthly drop in the previous three months.

The figures in January 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 0.8% on the year, reflecting continued weak household demand. Prices of clothing and footwear saw a 0.7% y/y fall in January, slightly smaler than December’s drop of 1.1% y/y. Food prices also swung into a 0.2% y/y decline in the month. Prices of motor fuels decreased by 0.6% y/y.

On the other hand, prices of alcohol beverages and tobacco products rose by 10.5% y/y, after a 12% y/y hike in December. Costs of services advanced by 3.1% y/y in January, slower that the 3.7% y/y increase a month earlier.

Related Articles

Wizz Air applies for UK license as it prepares for Brexit turbulence

Hungary-based no-frills airline Wizz Air has set up subsidiary in the United Kingdom and is considering acquiring an air operators certificate (AOC) in preparation for possible negative impacts ... more

Hungarian retail investors continue to pile into domestic government bonds

The stock of government bonds held by households rose by HUF154bn (€500mn) September to an all-time high of HUF6.5 trillion, Hungary’s Government Debt Management Agency (AKK) said on October 16. ... more

Hungary to issue euro bonds after six years

Hungary’s Government Debt Management Agency AKK announced on September 26 that it plans to issue 10-year Eurobonds to refinance high-interest dollar bonds maturing soon. The agency mandated BNP ... more