Consumer prices in Hungary grew by 3.4 percent year on year in July, the Central Statistical Office (KSH) said on Wednesday.
In a month-on-month comparison, prices were up 0.3 percent. The headline figure accelerated from 3.1 percent in June.
Food prices increased by 3.6 percent and the price of spirits and tobacco grew by 5.3 percent. Clothing prices inched up 0.7 percent, household energy prices were up 1.5 percent and service prices rose by 1.6 percent.
Prices in the category of goods that includes vehicle fuel climbed 7.5 percent, with fuel prices rising 17.8 percent. Consumer durable prices eased by 0.1 percent.
Annual CPI harmonised for better comparison with other European Union member states stood at 3.4 percent.
Seasonally adjusted core inflation, which excludes volatile fuel and food prices, was 2.4 percent.
Calculating with a basket of goods and services used by pensioners, inflation was 2.9 percent.
Péter Virovácz of ING Bank said inflation growth was above the 3.3 percent market consensus for July but core inflation remained unchanged. The analysts said he did not expect a change in the central bank’s monetary policy, as the numbers were in line with the NBH’s forecast. Further, the price of oil and the exchange rate of the forint against the euro appear to be stabilising, he said, adding that inflation was likely to be 2.8 percent for the full year.
Gergely Suppán of Takarékbank attributed the higher-than-expected CPI to rising fuel prices. The forint has regained some of its strength but is unlikely to push inflation higher in the rest of the year, he added.
Rising food prices could boost prices soon, he warned.