Farm PPI down 5.5 pc in November, consumer prices in Hungary grew by an annual 1.8 percent in December 2016

Budapest, January 13 (MTI) – Consumer prices in Hungary grew by an annual 1.8 percent in December 2016, the Central Statistical Office (KSH) said on Friday.

Analysts had forecast December headline inflation at around 1.6 percent.

The economy ministry said on Friday the 0.4 percent inflation for the full year was in line with its expectations. It forecast consumer prices growing by “a moderate” 1.6 percent this year.

Analyst Péter Virovácz of ING Bank said that in 2017 inflation was likely to average 2.5 percent or possibly even higher.

CIB Bank analyst Sándor Jobbágy noted that inflation was still below the National Bank of Hungary’s official 3 percent target and low in absolute terms. But it is also clear that trends point toward rising inflation, he said, forecasting inflation of over 2 percent.

Gergely Suppán of Takarékbank said annual CPI was likely to average 2.3 percent this year.

Farm PPI down 5.5 pc in November

Agricultural producer prices in Hungary fell by an annual 5.5 percent in November, the Central Statistical Office (KSH) said on Friday.

The price of live animals and animal products rose 5.1 percent, while crop prices fell by 11.4 percent. Grain prices dropped by 14.6 percent, fruit prices fell by 6.5 percent, vegetable prices eased 3.4 percent and potato prices were down 9.2 percent in one year.

Source: MTI