Two important data arrived about the state of the Hungarian economy

Factory gate prices in Hungary rose by an annual 6.4 percent in June, slowing from 11.2 percent in the previous month, the Central Statistical Office (KSH) said on Monday.

Prices for domestic sales climbed by 29.8 percent, boosted by energy prices, while export prices slipped 5.0 percent. Month on month, prices fell by 1.3 percent as prices for domestic sale fell by 2.4 percent and export prices by 0.7 percent. Domestic energy prices, which account for 30 percent of PPI, jumped by an annual 87.7 percent lifted in part by the narrower application of regulated household utilities prices from August. Domestic prices of the manufacturing sector, which have a 65 percent weight in the PPI, increased 5.0 percent.

Export prices of the manufacturing sector edged down by 0.3 percent, while energy sector export prices, dropped by 37.9 percent. In January-June, factory gate price climbed by an annual 19.6 percent as prices for domestic sales rose by 45.6 percent and export prices increased ba 7.0 percent. Commenting on the data, the ministry of economic development said the government expanded mandatory discounts imposed on food stores, a measure that, along with an online price monitoring system, contributed to a “ruthless price race” expected to push inflation into single digits by year-end.

From the beginning of August, the mandatory discount was raised to 15 percent from 10 percent. Stores are obligated to cut prices on products in certain basic food categories compared with last month’s price. The circle of categories was also expanded to 20, including sugar, flour, cooking oil and other products, the ministry said. The government continues to protect families and pensioners from rising food prices driven by the war and sanctions, the ministry said.

Home building permit issues plunge in H1

The number of home building permits issued in Hungary fell by 38.6 percent year-on-year to 10,880 in the first half, data released by the Central Statistical Office (KSH) on Monday show. The number of home completions fell by 19.5 percent to 7,353. Home completions in the capital dropped by 36.0 percent, the number declined by 28.0 percent in county seats and cities with populations over 50,000 and fell by 6.9 percent in smaller cities. In Hungary’s smallest settlements, the number increased by 9.2 percent.