MNB measures of underlying inflation little changed in January

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Although headline inflation rose 0.5 percentage points to 2.3% in January, measures of underlying inflation of the National Bank of Hungary (MNB) "did not indicate any significant change compared to the previous month," the central bank said today.

Headline inflation rose mainly on higher fuel prices and in part on the base effect, the central bank said. The measures of underlying inflation were broadly unchanged while "changes in the prices of demand-sensitive products and more volatile items with greater sensitivity to cost changes, i.e. food and energy, had an upward effect on prices," the MNB added.

"Householdsʼ inflationary expectations have been broadly unchanged in recent months and remained at moderate levels, in line with underlying inflation developments," the MNB said, reiterating statements issued in the previous months.

The MNBʼs indicator for core inflation, excluding indirect tax effects, was 1.6% in January, unchanged from December. 

The indicator for demand-sensitive inflation, which excludes processed foods from core inflation, was 1.5% in January, down from 1.6% in December.

The indicator for "sticky price" inflation, which includes items for which retail prices vary, on average, no more than 15% a month, was 1.7%, also edging down from 1.8% in the previous month.

Data released by the Central Statistical Office (KSH) earlier on Tuesday showed that January consumer prices rose by 2.3% year-on-year, and by 0.4% month-on-month.

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