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              

Related Articles

Hungary's MOL strikes licensing deals essential to $1.9bn petrochemical expansion ambitions

Hungary's MOL announced on July 20 that it has struck licensing deals with Germany's Evonik Industries and Thyssenkrupp that will be essential in its plan to roll out a $1.9bn investment in ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Hungary signs deal to link to Russia's Turkish Stream gas pipeline

Budapest has signed a deal with Russia's Gazprom to link Hungary with the under-construction Turkish Stream ... more

Dismiss