Hungary: Inflation edges up in March
April 11, 2014
In March, consumer prices rose 0.2% over the previous month according to the statistical office. The modest increase, which followed the 0.1% rise recorded in February, was driven by higher prices for alcoholic beverages and services, which compensated for a price decline in electricity, gas and other fuels, clothing and footwear, and in consumer durables.
In March, annual headline inflation remained at February's 0.1%. Inflation is still 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 (February: +2.9% month-on-month). Meanwhile, annual core inflation inched down from 2.8% in February to 2.7% in March.
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 down 0.4 percentage points over last month's projection. Next year, the panel expects inflation to rise to 3.1%.
Author: Armando Ciccarelli, Head of Data Solutions