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 |
Related Articles
Non-performing loans hit historic low in CESEE, but early warning signs emerge, says EBRD
Non-performing loans (NPLs) in central, eastern and south-eastern Europe (CESEE) fell to their lowest levels since the global financial crisis in 2024, but early indicators suggest rising risks ... more
Glass wool production restarts in Hungary after 16-year hiatus
Glass wool manufacturing has resumed in Hungary after a 16-year break, as the first trial products rolled off the production line at a new thermal insulation plant built in northeastern Hungary ... more
Most Read
-
Putin to skip Rio BRICS summit over ICC warrant as Xi signals no-show
16 days ago
-
Turkey yet to prove rare earth deposit has suggested “giant” potential despite reported processing talks with China
10 months ago
-
Uproar in Mongolia as development bank reveals scale of risky loans and NPLs
3 years ago