Hungary: Inflation rises to highest level since May
November 11, 2011
In October, consumer prices added 0.7% over the previous month, which contrasted the 0.1% drop recorded in September. The monthly price climb was broad-based, with six out of seven categories reporting higher prices over the previous month, in particular food, clothing and footwear as well as electricity, gas and other fuels. Owing to the strong monthly print, annual headline inflation rose from 3.6% in September to 3.9% in October, which represents the highest level since May and overshot market expectations that had inflation inching up to 3.7%. Meanwhile, seasonally adjusted core inflation, which excludes volatile items such as food and fuel, remain unchanged at September's annual rate of 3.0%. In its latest inflation report from September, the Central Bank anticipates year-end inflation at 3.7%, which is above the 3.0% inflation target but within the 1.0 percentage point tolerance margin.