Hungary: Consumer prices register record drop in January
February 11, 2015
In January, consumer prices fell 0.2% over the previous month, which followed the 0.7% drop observed in December. The figure represented the smallest decline in four months and reflected falling prices for several categories of the price index, such as food as well as clothing and footwear.
In annual terms, consumer prices decreased 1.4% in January, following the 0.9% drop observed in the previous month and representing the steepest decline on record. As a consequence, inflation fell further below the Central Bank’s target of 3.0%, with a tolerance margin of plus/minus 1.0%. Core consumer prices, which exclude volatile items such as fresh food and fuel, rose 0.3% over the previous month, contrasting December’s 0.2% price decrease. Meanwhile, annual core inflation edged down from 0.9% in December to 0.7% in January.