Hungary: Inflation eases in October
November 12, 2013
In October, consumer prices fell 0.3% over the previous month, which contrasted the 0.5% increase recorded in September. According to the statistical office, the monthly figure was the result of a decrease in prices for transportation and health care, as well as for housing, water, electricity, gas and other fuels.
Annual headline inflation eased from 1.4% in September to 0.9% in October and undershot the 1.4% increase the markets had expected. 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 0.2% over the previous month. Meanwhile, annual core inflation edged down from 3.5% in September to 3.4% in October.
In its September inflation report, the Central Bank projected that inflation will end 2013 at 2.0% and rise 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