Hungary's industrial producer prices drop 1.1% y/y in May 2014

By bne IntelliNews July 1, 2014

Hungary's industrial producer prices declined by 1.1% y/y in May 2014, softening from a 1.5% y/y fall in the previous month, the statistics office said. On a monthly basis, prices were down by 0.8% in May, decreasing at the same pace as in the previous month.

The annual drop was driven by a 2.4% y/y decrease in domestic prices and a 0.3% y/y fall in export prices.

Prices in the manufacturing sector, which traditionally determines the overall price dynamics, stagnated on an annual basis in May after decreasing in March and April. Manufacturing domestic prices picked up by 0.7% y/y, offsetting a 0.3% y/y drop in export manufacturing price.

In our view, the dynamics of the PPI points to lower inflationary pressure on consumer prices in the short term. Hungary's consumer prices edged down by 0.1% y/y in April after rising by 0.1% the month before.

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