Hungary’s September inflation down, CPI up

The consumer price index (CPI) was up 0.7% in September over August and climbed 6.4% compared to a year earlier, according to data from Hungary’s Central Statistics Office (KSH). The yearly figure was down sharply from 8.3% growth recorded last month because of base effects caused by government austerity measures last year.

However, the figure was over market forecasts of around 6.0%, due to a higher-than-expected rise in food prices, caused partly by drought conditions in the summer. Food prices were up 2.2% in September over August, compared to a 0.1% rise the month before, and climbed 9.8% year-on-year. „The rise in food prices is the main factor that deviated from analysts’ forecasts,” said Borbála Mináry, a statistician at KSH.

„Prices in the whole (food) product group are rising slowly and gradually, producing a significant overall lift.” Inflation in the service sector was down 0.6% month-on-month, decreasing for the first time this year, while clothing grew 3.7% due to seasonal factors. Household energy was up 0.1% on the month but grew only 12.9% on the year compared to 31.0% last month because of the base effect of price rises last year. (fxstreet)