Hungary: Inflation falls to the lowest level in over two years
July 11, 2011
In July, consumer prices dropped 0.3% over the previous month, which came in below the 0.2% price drop recorded in June. The monthly price decline was mainly the result of lower food prices (-1.2% month-on-month) as well as for clothing and footwear (-2.5% mom), owing to the summer sales. On the back of the subdued monthly reading, annual headline inflation declined for the third month in a row, falling from 3.5% in June to 3.1% in July. The print marked the lowest level since March 2009 and beat market expectations that had inflation falling to 3.3%. Meanwhile, seasonally-adjusted core inflation, which excludes volatile items such as food and fuel, accelerated from 3.0% to 3.2%. In its latest inflation report from June, the Central Bank anticipates year-end inflation at 3.9%, which is above the 3.0% inflation target.