Hungary's consumer prices increased by 0.2% y/y in August 2014, accelerating slightly from a 0.1% y/y rise in the previous month, data by the statistics office showed. The reading was in line with market expectations since analysts polled by portfolio.hu expected a growth of between 0.2-0.3% y/y in the month.
On a monthly basis, consumer prices in the country declined by 0.2% in August, reversing from a 0.2% rise in July.
Food prices edged down by 0.1% y/y in August, softening from a 0.4% drop the month before. Similarly, prices of consumer durable goods dropped by 0.2% y/y, following a 0.4% fall in July. The decline, although at a slower pace, signals for continued weak household demand. Prices of clothing and footwear extended their downward trend, falling by 0.3% on the year in August. Cost of motor fuels fell by 0.2% y/y as well.
On the other hand, prices of alcohol beverages and tobacco products rose by 6.4% y/y in August, slightly slower than in July when they grew by 7.1% y/y. Costs of services advanced by 2.7% y/y.
The government's decision to cut household gas prices by 6.5% as of April 1 continued to determine the deflationary effect. Prices of electricity, gas and other fuels fell 12% y/y in August, declining at the same pace as in the previous month.
| Consumer prices, % y/y | |||||||
| Dec-13 | Jan-14 | Apr-14 | May-14 | June-14 | Jul-14 | Aug-14 | |
| TOTAL | 0.4 | 0.0 | -0.1 | -0.1 | -0.3 | 0.1 | 0.2 |
| Food | 0.1 | -0.2 | -0.5 | -0.8 | -1.3 | -0.4 | -0.1 |
| Alcoholic beverages, tobacco | 12.0 | 10.5 | 7.3 | 7.8 | 7.7 | 7.3 | 6.4 |
| Clothing and Footwear | -1.1 | -0.7 | -1.4 | -1.0 | -0.9 | -1.0 | -0.3 |
| Consumer durable goods | -1.6 | -0.8 | -0.5 | -0.6 | -0.8 | -0.4 | -0.2 |
| Electricity, gas and other fuels | -17.7 | -16.9 | -10.3 | -12.5 | -12.3 | -12.0 | -12.0 |
| Other goods incl. motor fuels and lubricants | 0.9 | -0.6 | -0.6 | 0.8 | 0.8 | 0.9 | -0.2 |
| Services | 3.7 | 3.1 | 1.6 | 1.4 | 1.3 | 1.8 | 2.7 |
| Source: KSH |
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