Hungary: Inflation inches up in September
October 11, 2013
In September, consumer prices rose 0.5% over the previous month, which contrasted the 0.3% fall recorded in August. According to the statistical office, the monthly result came on the back of higher prices for alcoholic beverages and tobacco as well as clothing and footwear.
Annual headline inflation inched up from 1.3% in August to 1.4% in September, and slightly overshot the 1.2% rise expected by the markets. As a result, inflation remains below the Central Bank's inflation 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, increased 0.7% over the previous month. Meanwhile, annual core inflation edged up from 3.0% in August to 3.5% in September.
In its September inflation report, the Central Bank projected that inflation will end 2013 at 2.0% and rise to 2.4% by the end of 2014. FocusEconomics panelists 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%, which is down 0.2 percentage points from last month's estimate.
Author: Dirina Mançellari, Senior Economist