Hungary: Inflation inches down in July
August 13, 2013
In July, consumer prices fell 0.3% over the previous month, contrasting the 0.2% rise recorded in June. According to the statistical office, the monthly rise was driven by lower prices for clothing and footwear as well as for food.
As a result of the monthly drop, annual headline inflation decreased slightly from 1.9% in June to 1.8% in July, which was below the 2.0% the market had expected. As a result, inflation is still below the Central Bank's inflation target of 3.0% and its tolerance margin (3.0% plus/minus 1 percentage point).
The core inflation index, which excludes volatile items such as fresh food and fuel, rose 0.15% over the previous month. Meanwhile, annual core inflation dropped from 3.0% in June to 2.8% in July.
In its June inflation report, the Central Bank projected that inflation will end 2013 at 2.1% and rise to 3.2% by the end of 2014. FocusEconomics panellists see year-end inflation at 3.3%, which is down 0.3 percentage points over last month's projection. Next year, the panel expects inflation to inch up to 3.4%.