In January, consumer prices added 2.1% over the previous month, which came in well above the 0.2% increase recorded in December. The monthly jump reflected an increase in the value added tax (VAT), which was raised from 25% to 27% in January. Higher prices for food as well as for alcoholic beverages and tobacco were mostly responsible for the monthly climb, whereas prices for clothing and footwear as well as for consumer durables declined over December. Owing to the strong monthly price increase, annual inflation jumped from 4.1% in December to 5.5% in January, which represents the highest reading since April 2010 and now sits well above the Central Bank's 3.0% inflation target with a 1.0 percentage point tolerance margin. Meanwhile, the seasonally adjusted core inflation index, which excludes volatile items such as food and fuel, increased 1.6% over the previous month, driving annual core inflation up to 4.9%. In its latest inflation report from December, the Central Bank expects inflation to end this year at 4.6%, which would again exceed the Central Bank's inflation target, which remains at 3.0%.
Inflation jumps in January on VAT hike
February 14, 2012
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Hungary Economic News
October 11, 2016
In September, consumer prices rose 0.2% from the previous month, contrasting August’s 0.4% decrease.
October 7, 2016
According to preliminary data released by the Statistical Institute (KSH) on 7 October, industrial output in August rose a working-day adjusted 3.5% from the same month last year, rebounding from July’s 0.1% decrease and marking a four-month high. On a monthly basis, industrial production increased a seasonally- and working-day adjusted 1.6% in August, which followed July’s 0.3% decrease.
September 26, 2016
The GKI economic sentiment indicator advanced slightly from August’s minus 3.9 points, which was the lowest reading in over two years, to the still-low level of minus 3.6 points in September.
Hungary: Central Bank leaves base rate at 0.90%, continues easing monetary conditions by capping main deposit facility
September 20, 2016
The Central Bank of Hungary (NBH) held all rates constant at its 20 September monetary policy meeting, but continued easing monetary policy conditions by using unconventional monetary policy instruments.
September 9, 2016
In August, consumer prices fell 0.4% over the previous month, coming in below July’s softer 0.2% decrease.