Hungary: Consumer prices continue to decline in June
July 11, 2014
In June, consumer prices increased 0.1% over the previous month according to the statistical office. The rise, which contrasted the 0.2% fall recorded in May, reflected that an increase in prices for services as well as for alcoholic beverages and tobacco more than compensated for lower prices for electricity, gas and other fuels, clothing and footwear and foodstuffs.
In June, consumer prices fell 0.3% over the same month last year, which came in below May’s 0.1% drop and marked the largest decline in consumer prices on record. As a consequence, annual inflation stayed below the Central Bank’s target of 3.0% with a tolerance margin of plus/minus 1.0%. The core inflation index, which excludes volatile items such as fresh food and fuel, rose 0.1% over the previous month (May: +0.2 month-on-month). Meanwhile, annual core inflation remained stable at May’s 2.5% in June.