CPI falls to 2.8% in September, below MNB target
Hungaryʼs annualized consumer price index (CPI) stood at 2.8% in September 2019, falling under the 3% target of the National Bank of Hungary (MNB) for the first time since January. The central bank attributed the drop in headline inflation mainly to a drop in prices of unprocessed food and fuel.
Annualized CPI dropped from 3.1% in August. The headline September figure was lifted by a 5.1% rise in food prices and an 8.4% increase in prices of alcoholic beverages and tobacco products, while prices in the category of goods which includes vehicle fuel dropped 1.0% as vehicle fuel prices declined 4.6%.
Clothing prices edged up 0.6%, household energy prices increased 0.7%, and consumer durable prices fell 1.4%. Services were up 3.4%.
Harmonized for better comparison with other EU Member States, Hungaryʼs annualized CPI was 2.9% in September. Core inflation, which excludes volatile food and fuel prices, was a seasonally adjusted 3.9%, while CPI calculated with a basket of goods and services used by pensioners was 3.1%.
Excluding the impact of tax changes, consumer prices rose 2.7%.
In a month-on-month comparison, consumer prices were up 0.1% in September compared to August.
Consumer prices were up 3.3% in January-September 2019, compared to the first nine months of 2018.
MNB underlying inflation up to 3.4%
In its customary monthly analysis released after the publication of the KSH data, the MNB attributed the drop in headline inflation mainly to a drop in the price index for unprocessed food and fuel. Core inflation was lifted to 3.9% in September, from 3.7% in August, mainly by a rise in the price index of market services, the MNB said.
The central bankʼs measure of core inflation excluding indirect tax effects - which state news agency MTI describes as a bellwether indicator of underlying inflation - was 3.4% in September, climbing from 3.2% in the previous month.
After its monthly rate-setting meeting in September, MNB policy-makers said core inflation excluding indirect tax effects "is expected to rise slightly, before decreasing to 3% along a lower than previously expected path, due to external disinflationary effects."
The MNBʼs monthly analysis shows that its indicator for demand-sensitive inflation, which excludes processed foods from core inflation, stood at 3.1%, rising from 2.9% in the previous month. The indicator for "sticky price" inflation, which includes items for which retail prices vary, on average, by no more than 15% a month, was unchanged at 3.4%.
The MNB said householdsʼ inflation expectations "remained moderate... at a level consistent with the 3% inflation target" in September.
Consumer price data for October will be published on November 8.
Hungary Gasoline Prices 3% Over Regional Avg
Hungary to Address Future of Cohesion Policy During EU Presi...
Cordia’s Marina City Project Begins
Budapest Airport Wins 'Best Airport in Eastern Europe' for 1...
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
