Hungary’s industrial producer prices decreased by 1.9% y/y in March 2014, reversing a 0.2% y/y rise in the previous month, the statistics office said. On a monthly basis, prices were down by 0.6% in March, snapping a three-month rising streak.
The annual drop was driven by a 2.5% y/y decrease in domestic prices and a 1.6% y/y fall in export prices
Prices in the manufacturing sector, which traditionally determines the overall price dynamics, were down by 1% y/y, reversing from annual rise in the previous eleven months. The decrease was on the back of a 0.3% y/y drop in domestic prices and 1.3% y/y drop in export prices.
IntelliNews comment: The dynamics of the PPI inflation points to lower inflationary pressure on consumer prices in the short term. Hungary's consumer prices edged up by 0.1% y/y in March, rising at the same pace as in the previous month.
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