Hungary CPI negative 0.3 pc in July

Budapest, August 9 (MTI) – Consumer prices in Hungary fell by an annual 0.3 percent in July on lower vehicle fuel and household energy prices, the Central Statistical Office (KSH) said on Tuesday.

Analysts had expected headline CPI to be around or slightly under zero because of low fuel prices and base effects.

The twelve-month CPI was negative 0.2 percent in both May and June.

Food prices rose by 0.2 percent after dropping 0.4 percent, in June. The price of alcohol and tobacco products was up by 1.8 percent. Clothing prices increased by 0.9 percent and the price of consumer durables was up by 0.2 percent. The price of services continued to increase at the fastest pace, by 1.3 percent. These increases were offset by a 0.1 percent decline in household energy prices and a 4.9 percent drop in the category of “other goods” which includes vehicle fuel. Vehicle fuel prices alone were down by an annual 13.0 percent.

In a month-on-month comparison, consumer prices dropped 0.2 percent in July, after rising by 0.2 percent in June. Food prices fell by 0.4 percent, as seasonal food prices dropped 5.5 percent. The price of “other goods” fell by 0.9 percent as vehicle fuel prices dropped 2.2 percent. Clothing prices slipped 2.3 percent on summer clearance sales, and the price of consumer durables was down by 0.2 percent. Household energy prices were unchanged. The price of tobacco and alcohol edged up 0.2 percent and service prices rose by 0.6 percent.