Hungary Inflation


Hungary: Consumer prices rise in July

August 12, 2014

In July, consumer prices rose 0.2% over the previous month, according to the statistical office. The rise, which followed the 0.1% price increase recorded in June, reflected that an increase in prices for services as well as for alcoholic beverages and tobacco more than offset lower prices for electricity, gas and other fuels, clothing and footwear and foodstuffs.

Consumer prices in July rose 0.1% over the same month last year, which contrasted June’s 0.3% drop and marked the highest inflation rate in four months. As a consequence, annual inflation still remains well 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 0.2% over the previous month (June: +0.1 month-on-month). Meanwhile, annual core inflation stabilized at June’s 2.5% in July.

In its June inflation report, the Central Bank projects that inflation will be zero at the end of 2014 and then increase to 2.5% at the end of 2015. FocusEconomics panelists’ projection is not in line with the Central Bank’s forecast as the panel sees 2014 year-end inflation at 1.3%, which is down 0.2 percentage points from last month’s projection. Next year, the panel expects inflation to rise to 2.9%.

Author: Teresa Kersting, Economist

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Hungary Inflation Chart

Hungary Inflation July 2014

Note: Year-on-year and month-on-month variation of consumer price index in %.
Source: Hungarian Central Statistics Office.

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