Hungary: Inflation rises in March, driven by higher food prices
April 12, 2011
In March, consumer prices added 1.1% over the previous month, which was well above the subdued 0.4% price hike recorded in February. Moreover, as the figure nearly doubled the 0.7% month-on-month rise observed in March last year, annual inflation jumped to 4.5% (February: 4.1%), overshooting market expectations of a 4.2% increase. As in previous months, the increase mostly reflected higher prices for food, which rose 2.0% over the previous month, while higher prices for clothing and footwear also contributed to the robust reading. Meanwhile, seasonally adjusted core inflation, which excludes volatile items such as food and fuel, rose 0.8% over the previous month, driving annual core inflation to 2.5% (February: 1.9%). In its latest inflation report from March, the Central Bank raised its year-end inflation forecast to 3.9%, further above its 3.0% target. Next year, the Bank sees year-end inflation falling to 3.0%.