Hungary: Inflation hits highest level in over four years
October 11, 2012
In September, consumer prices added 0.4% over the previous month, which was above both the 0.1% increase seen in August and market expectations of a 0.2% increase. The monthly increase was the result of higher prices for food as well as for clothing and footwear. Annual headline inflation rose from 6.0% in August to 6.6% in September, the highest level since July 2008, which exceeded market expectations of a softer 6.3% rate. Consequently, inflation continued to move further 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 up from 5.1% in August to 5.3% in September.