Hungary: Consumer prices drop in April, reach record-low
May 13, 2014
In April, consumer prices rose 0.1% over the previous month according to the statistical office. The modest increase, which followed the 0.2% rise recorded in March, was driven by higher prices for foodstuffs, clothing and footwear, which compensated for a drop in prices for alcoholic beverages and tobacco as well as for electricity, gas and other fuels.
In April, consumer prices fell 0.1% over the same month last year, which was down from the 0.1% price increase tallied in March and marked a record-low. As a consequence, annual inflation moved even further 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 (March: +0.2% month-on-month). Meanwhile, annual core inflation fell from 2.7% in March to 2.3% in April.
The Central Bank expects that inflation will end 2014 at 0.7% and increase to 3.0% by the end of 2015. FocusEconomics panelists see 2014 year-end inflation at 2.2%, which is unchanged over last month's projection. Next year, the panel expects inflation to rise to 3.1%.
Author: Armando Ciccarelli, Head of Data Solutions