Hungary: Inflation moves back within Central Bank's target range in July
August 8, 2017
Consumer prices were unchanged in July from a month earlier, resulting in a flat reading. Food, clothing and footwear prices slackened, however this was offset by higher prices for services, alcoholic beverages and tobacco.
Inflation in July increased to 2.1%, up from 1.9% in June and returned to within the Central Bank’s target band of 3.0% plus/minus 1.0 percentage point, where it hovered for the first five months of the year. The increase was primarily driven by a rise in food, alcoholic beverages and tobacco prices. The boost in inflation caused annual average inflation to edge up from 1.5% in June to 1.7% in July.
Core consumer prices, which exclude volatile items such as fresh food and fuel, edged up from 0.3% in June to 0.4% in July. Additionally, core inflation increased from 2.4% to 2.6%.
Author: Lindsey Ice, Economist