Hungary: Inflation jumps in August
September 13, 2011
In August, consumer prices dropped 0.1% over the previous month, which came in above the 0.3% price drop observed in July. As in the previous month, the price drop was mainly driven by lower prices for food (-1.1% month-on-month) as well as for clothing and footwear (-2.6% mom). That said, the monthly drop came in well above the 0.6% decline tallied in the same month last year, pushing annual headline inflation up from 3.1% in July to 3.6% in August. In contrast, seasonally-adjusted core inflation, which excludes volatile items such as food and fuel, moderated from 3.2% in July to 3.1%. 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 but within the 1.0 percentage point tolerance margin.