Hungary: Inflation rises on higher oil prices
September 11, 2012
In August, consumer prices added 0.1% over the previous month, which contrasted the 0.1% drop seen in July but was below market expectations of a 0.2% increase. The monthly price increase was the result of higher oil prices, which completely offset lower prices for food as well as for clothing and footwear. Annual headline inflation rose from 5.8% in July to 6.0% in August, which came in below market expectations that had inflation rising to 6.2%. 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 0.1% over the previous month. Annual core inflation remained unchanged at July's 5.1%. In its latest inflation report from June, the Central Bank projects inflation to end the year at 4.8% before gradually falling to 3.5% by the end of 2013.