Hungary: Rising food prices drive inflation higher
March 11, 2011
In February, consumer prices added 0.4% over the previous month, which was well below the 0.7% price increase tallied in January. Meanwhile, annual inflation inched up from 4.0% in January to 4.1%, which matched market expectations. The December price rise was primarily driven by higher food prices, which were partly offset by lower prices for clothing and footwear. Consequently, seasonally adjusted core inflation, which excludes volatile items such as food and fuel, rose a more subdued 0.1% over the previous month, driving annual core inflation to 1.9% (January: 1.7%). In its latest inflation report from November, the Central Bank raised its year-end inflation forecast above its 3.0% target to 3.8 %.