In February, consumer prices added 0.8% over the previous month. The reading came in at nearly a third of the strong 2.1% increase observed in January, which had reflected a rise in the value added tax (VAT) from 25% to 27%. February's monthly increase was mainly driven by higher prices for food, alcoholic beverages and tobacco as well as for electricity, gas and other fuels. Owing to the strong monthly price increase, annual inflation jumped from 5.5% in January to 5.9% in February. The figure marked the highest reading since March 2010 and beat market expectations that had inflation inching up to 5.6%. At the current level annual inflation 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 0.6% over the previous month, driving annual core inflation up from 4.9% in January to 5.4% in February. In its latest inflation report from March, the Central Bank projects inflation to end the year at 5.1% before falling to 2.8% by the end of 2013.
Inflation rises to highest level in nearly two years
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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.