Consumer prices in Hungary grew by an annual 1.9% in June, down from 2.1% in May, the Central Statistical Office (KSH) said.
The June rate was slightly below the market consensus of 2%. Food prices grew by 3.1% and prices of spirits and tobacco climbed by 4.6% in June. The price of goods in the category that includes vehicle fuel rose 0.9% and services were up 1.4%. In a month-on-month comparison, prices were flat in June. The Consumer Price Index (CPI) harmonised for better comparison with other European Union member states was an annual 2% in June. Core inflation, which excludes volatile fuel and food prices, was 2.4%.
The National Bank of Hungary (MNB) said in a separate release on Tuesday that its measures of underlying inflation developments “continued to be in a 1.5-2.0% band” in June. The indicator for core inflation, excluding indirect tax effects, was 2.2% in June, rising from 2.0% in the previous month. The indicator for demand-sensitive inflation, which excludes processed foods from core inflation, was 1.7%, edging up from 1.6%; while the indicator for sticky price inflation, which includes items for which retail prices vary, on average, no more than 15% a month, dropped to 1.9% from 2.0%. Households’ inflation expectations “have remained at moderate levels in recent months, in line with underlying inflation developments”, the MNB said.
Erste Bank chief analyst Gergely Ürmössy said lower fuel and unprocessed food prices contributed to the slowdown in June inflation. CPI probably bottomed out during the month and could start to accelerate from July, he added, putting average annual inflation at 2.2%.
via hungarymatters.hu, ksh.hu and mnb.hu