Hungary: Inflation continues to moderate
December 21, 2012
In November, consumer prices fell 0.1% over the previous month, which contrasted both the 0.1% increase seen in October and market expectations of a 0.2% increase. The monthly drop reflected how lower prices for motor fuels and durable goods offset higher prices for food.
Annual headline inflation fell from 6.0% in October to 5.2% in November, the lowest level since December 2011, which came in below market expectations of a 5.5% rate. Despite the moderation, inflation remains 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 0.3% over the previous month. Annual core inflation remained unchanged at October's 5.1%.
In its latest inflation report from December, the Central Bank projects inflation to end 2013 at 3.3% before moderating to 3.1% by the end of 2014