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Factory gate prices almost level y-o-y in June

Industrial producer prices as a whole were just 0.1% higher in June 2019 than in the same month of the previous year, show data from the Central Statistical Office (KSH). Changes in prices were influenced by wage growth, forint exchange rate changes, and world petroleum market price trends.

Domestic output prices rose by 3.0% on average, within which prices in manufacturing (representing a weight of 67%), and prices in the energy industry (gas, electricity and steam supply, with a weight of 28%), both rose by 2.8% compared to a year earlier.

Of the end-use groups of the producing branches of industry, as defined by the KSH, prices in Hungary increased by 2.2% in energy and intermediate producing, by 3.5% in capital goods producing, and by 5.3% in consumer goods producing branches.

Within the manufacturing sector, factory gate prices rose 0.3% year-on-year in June. Prices of the transport equipment segment were down 1.3%, while prices in the computer, electronic and optical products segment were up 0.1%. Prices in the food, beverages and tobacco segment were up 4.7%, while prices in the gas, electricity and steam supply segment fell 1.8%.

Export output prices decreased by 1.2% compared to June of the previous year, within which prices declined by 0.5% in manufacturing (representing a weight of 96%), and – owing to annual price changes in the international electricity market – by 16% in the energy industry (with a weight of 4.1% in exports).

In a month-on-month comparison, industrial producer prices were down 0.6% overall from May, as domestic prices fell 0.8% and export prices slipped 0.6%.

In January–June 2019, compared to the first half of 2018, domestic output prices went up by 5.2% and export output prices by 1.5%, making industrial producer prices as a whole 2.7% higher in H1.

Industrial producer prices for July 2019 will be published by the KSH on September 2.