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

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

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