Hungary: Inflation eases more than expected
November 13, 2012
In October, consumer prices added 0.1% over the previous month, which was below both the 0.4% increase seen in September and market expectations of a 0.4% increase. The monthly increase reflected how lower prices for fuels and services partially offset higher prices for food as well as for clothing and footwear. Annual headline inflation fell from 6.6% in September to 6.0% in October, which came in below market expectations of a 6.3% rate. Despite the moderation, inflation remains above the Central Bank's inflation target of 3.0% with a 1.0 percentage point tolerance margin. Meanwhile, the seasonally adjusted core inflation index, which excludes volatile items such as food and fuel, added 0.2% over the previous month. Annual core inflation edged down from 5.3% in September to 5.1% in October.