In February consumer prices decreased by 1.0% compared to February 2014, Central Statistical Office’s (KSH) latest report shows. During this period significant price decrease was observed in case of motor fuels as well as electricity, gas and other fuels. Beside the decreased prices of food, consumer durable goods as well as clothing and footwear price rise was observed in case of services as well as alcoholic beverages and tobacco, KSH said. In January–February of 2015 the average price decrease was 1.2% compared to the corresponding period of 2014.
In reaction to the report Economy Minsitry said that declining inflation helped low-income families to the largest extent, as they spend the largest share of income on consumption. Subdued prices create a more predictable economic environment for enterprises. Muted inflation facilitates lower yields, and it assists enterprises in the financing of new investment projects and these eventually also improve economic performance, the Ministry said.
Inflation has been in negative territory for the past half a year in Hungary, but the pace of price decline has decelerated. Due to rebounding domestic demand, inflation may pick up in 2015, but disinflationary effects within Europe are set to continue to dampen price rises.
via ksh.hu and kormany.hu photo: alternativenergia.hu