Hungary: Consumer prices register steepest decline on record
October 10, 2014
In September, consumer prices fell 0.2% over the previous month, mirroring August’s reading. The fall reflected that a decrease in prices for food, consumer durable goods and services more than offset higher prices for clothing and footwear.
In annual terms, consumer prices dropped 0.5% in September (August: +0.2% year-on-year), which represented the largest drop on record and came in below market expectations of a 0.3% decline. As a consequence, annual inflation moved 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, fell 0.3% over the previous month (August: +0.1 month-on-month). Meanwhile, annual core inflation declined from 2.4% in August to 1.4% in September, which marked the lowest rate since July 2010.