Hungary: Inflation stable in November
December 11, 2013
In November, consumer prices fell 0.1% over the previous month, which was above the 0.3% decrease recorded in October. According to the statistical office, November's decline was mainly the result of a decrease in prices for food and non-alcoholic beverages, as well as for housing, water, electricity, gas and other fuels.
Annual headline inflation was stable at the previous month's 0.9% and met market expectations. Inflation remains well below the Central Bank's 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, rose 0.4% over the previous month (October: +0.2% month-on-month). Meanwhile, annual core inflation inched up from 3.4% in October to 3.5% in November.
In its September inflation report, the Central Bank projected that inflation would end 2013 at 2.0% and increase 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