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|
|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|
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