inflation statistics

Consumer prices in Hungary increased by an annual 3.1 percent in June, up from 2.8 percent in May, the Central Statistical Office (KSH) said on Tuesday.

In a month-on-month comparison, prices were up 0.3 percent.

Eight analysts polled by business news website said earlier they expected inflation to accelerate to 3.2 percent in June.

Food prices rose by 3.4 percent and the price of spirits and tobacco grew by 5.9 percent.

Clothing prices inched up 0.6 percent, household energy prices were up 1.4 percent and services prices rose by 1.6 percent.

Prices in the category of goods that includes vehicle fuel increased by 6.2 percent, with fuel prices rising 15 percent. Consumer durable prices were down 1.1 percent.

Annual inflation harmonised for better comparison with other European Union member states stood at 3.2 percent.

Seasonally-adjusted core inflation, which excludes volatile fuel and food prices, was 2.4 percent.

Péter Virovácz of ING Bank said in the summer inflation was likely to be higher than the central bank’s projection of 3 percent. The weakening of the forint and higher oil prices pose a risk. Inflation, he added, was likely to average 2.8 percent for the entire year.

Gergely Suppán of Takarekbank said inflation was expected to be around 2.7 percent for the year. Inflation is seen fluctuating around 3 percent next year and averaging 2.8 percent in 2019, he added.

K+H Bank analyst Dávid Németh said fuels and tobacco products pushed inflation higher in June.

Without this, inflation would have been unchanged from 2.8 percent in May. The consumer price index may be above 3 percent for the rest of the year and reach 3.3-3.4 percent by December, although it is still likely to average 2.8 percent in the full year, he said.

Source: MTI

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