Hungary: Inflation eases in August
September 12, 2013
In August, consumer prices fell 0.3% over the previous month, which was equal to the decrease recorded in July. According to the statistical office, the monthly decrease was driven by lower prices for food and industrial production.
Annual headline inflation met market expectations and eased from 1.8% in July to 1.3% in August. Inflation remains below the Central Bank's inflation target of 3.0% and its tolerance margin (3.0% plus/minus 1 percentage point).
The core inflation index, which excludes volatile items such as fresh food and fuel, rose 0.2% over the previous month. Meanwhile, annual core inflation inched up from 2.8% in July to 3.0% in August.
In its June inflation report, the Central Bank projected that inflation will end 2013 at 2.1% and rise to 3.2% 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%.
Author: Dirina Mançellari, Senior Economist