Hungary: Inflation moderates
July 11, 2012
In June, consumer prices added 0.1% over the previous months, which contrasted both the 0.2% decline witnessed in May and market expectations that had prices dropping 0.1%. The monthly increase reflected higher prices for alcoholic beverages and tobacco as well as for services, which were not entirely offset by lower prices in most of the remaining categories. Annual headline inflation rebounded in June, rising from 5.3% May to 5.6%, which exceeded market expectations that had inflation at 5.4% and thus moved further 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, rose 0.4% over the previous month, driving annual core inflation up a notch to 4.9% in June.