Hungarian Inflation Rate Picks Up to 1.4% in September


In September of 2013, Hungary’s annual inflation rate increased above market expectations to 1.4 percent, from 1.3 percent in August. The drop in housing cost was not enough to offset a rise in prices of financial services and alcoholic beverages and tobacco.

The highest annual increase was recorded for alcoholic beverages and tobacco (12.2 percent, up from 10.2 percent in August). Miscellaneous goods and services grew by 9.8 percent, mainly due to the jump in cost of financial services, while cost of health went up by 4 percent. Prices of food and non-alcoholic grew by 1.4 percent, down from 2.7 percent in the previous month. A substantial price increase was observed in cheese (8.6 percent), milk (5.7 percent) and pork (5.6 percent). Price decrease was observed for eggs (13.2 percent), sugar (9.1 percent), flour (7.0 percent) and chocolate, cocoa (5.0 percent). 

In contrast, prices of water charges, sewerage disposal and refuse disposal decreased around 10 percent. Cost of housing, water, electricity, gas and other fuels decreased at a slower pace: -6.4 percent, from -6.6 percent in August. Transportation cost decreased 0.2 percent and consumers paid 0.4 percent less for clothing and footwear and 1.7 percent less for consumer durable goods.

Month-over-month, prices grew 0.5 percent, in September, due to higher cost of alcoholic beverages and tobacco and miscellaneous goods and services. Food prices shrank 0.6 percent, mainly due to the 5.3 percent decline in price of seasonal food items.

Hungarian Central Statistical Office | Krisztina Györffy | krisztina@tradingeconomics.com
10/11/2013 12:34:41 PM