Hungary's consumer prices pick up 0.2% y/y in August 2014, in line with expectations

By bne IntelliNews September 12, 2014

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 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              

Related Articles

Hungary's electric sports aircraft maker expands production

Hungary's Magnus Aircraft is constructing a new manufacturing plant in southern Hungary near the regional Pecs-Pogany airport to meet rising demand for its unique aircraft and plans to finish ... more

Gyorgy Waberer to list logistics company BILK on Budapest bourse

Gyorgy Waberer, the former owner of haulage company Waberer, plans to list shares of Budapest logistics terminal BILK on the Budapest Stock Exchange in June, local media reported on May 28. “I ... more

Hungary reaches deal with Gazprom on 2019 gas deliveries

Hungary has reached an agreement with Russian gas giant Gazprom on the volume and price of next year's gas deliveries and negotiations have begun on gas deliveries for 2020, Foreign Minister Peter ... more