Hungary’s headline consumer price index rose to 0.6% in June from 0.5% in May, the Central Statistical Office (KSH) said. Analysts earlier forecast June inflation at 0.6-0.7%. In May, consumer prices rose after declining for eight months in a row. The central bank’s three underlying measures of inflation were unchanged in June compared with the previous month, even as headline inflation edged up, data published by the central bank on Wednesday show. The indicator for core inflation, excluding indirect tax effects, was 1.2% in June and the indicator for demand-sensitive inflation, which excludes processed foods from core inflation, was 2%. The bank said the levels “continue to show a moderate inflation environment”.
KSH’s latest inflation report shows that consumer prices increased by 0.6% on average. Food prices rose by 1.4%, and within this, price rise was observed among others in case of seasonal food items, i.e. potatoes, fresh vegetables and fruits (16.7%), egg (5.9%) and edible oil (4.7%). Price decrease was measured in case of sugar (15.4%), milk (8%), cheese (6.1%) and flour (5.9%). In case of alcoholic beverages and tobacco, the price rise was 3.6%. The price increase ofservices was 1.9%, and within this the prices of recreational services grew by 4.7%. A slight price rise was measured in case of consumer durable goods (0.8%) and clothing and footwear (0.1%) too. Consumers paid 2.3% less for other goods (including household and pharmaceutical products, as well as motor fuels and recreational goods), and within this the prices of motor fuels decreased by 7.3%. The price decrease of electricity, gas and other fuels was 2.7% on average, and within this consumers paid 5.7% less for electricity and 3.4% less for purchased heat.
Analysts said headline CPI in June was in line with their forecasts and could reach 2.5-3.0% by the end of the year. While K&H Bank chief analyst Dávid Németh said inflation was likely to reach 3% by December and average around 0.5% for the full year, Vivien Barczel and Gergely Ürmössy of Erste Bank forecast average annual inflation of 0.3% and a year-end reading of 2.5%. An economy ministry official said in response to the data that the current development of consumer prices is in line with the ministry’s forecast. A major rise in inflation is unlikely, state secretary for tax and financial affairs Gábor Orbán said, adding that the price index was expected to average around zero per cent. The 0.6% inflation in June is virtually imperceptible for the consumers and households, he said. Gábor Orbán also noted that June has only been the second month with positive inflation; the preceding 8 months had seen a decrease in consumer prices, partly due to the reduction of utility fees.
via ksh.hu and hungarymatters.hu photo: public domain