Budapest, July 8 (MTI) – Hungary’s headline consumer price index rose to 0.6 percent in June from 0.5 percent in May, the Central Statistical Office (KSH) said on Wednesday.
Analysts earlier forecast June inflation at 0.6-0.7 percent.
In May, consumer prices rose after declining for eight months in a row.
The central bank’s three underlying measures of inflation were unchanged in June compared with the previous month, even as headline inflation edged up, data published by the central bank on Wednesday show.
The indicator for core inflation, excluding indirect tax effects, was 1.2 percent in June and the indicator for demand-sensitive inflation, which excludes processed foods from core inflation, was 2 percent. The bank said the levels “continue to show a moderate inflation environment”.
Analysts said headline CPI in June was in line with their forecasts and could reach 2.5-3.0 percent by the end of the year.
K&H Bank chief analyst David Nemeth said inflation was likely to reach 3 percent by December and average around 0.5 percent for the full year.
Vivien Barczel and Gergely Urmossy of Erste Bank forecast average annual inflation of 0.3 percent and a year-end reading of 2.5 percent.
An economy ministry official said the current development of consumer prices is in line with the ministry’s forecast. A major rise in inflation is unlikely, state secretary for tax and financial affairs Gabor Orban said, adding that the price index was expected to average around zero percent. The 0.6 percent inflation in June is virtually imperceptible for the consumers and households, he told a press conference.
Orban also noted that June has only been the second month with positive inflation; the preceding 8 months had seen a decrease in consumer prices, partly due to the reduction of utility fees.