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Factory gate prices up 5.5% on average in 2018

Industrial producer prices rose 4.7% year-on-year in December, as price growth slowed for the sixth month in a row, the Central Statistical Office (KSH) said on Thursday. Prices for domestic sales were up 6.2%, while export prices rose 3.9%.

Domestic output prices increased by 6.2% on average, within which prices in the manufacturing sector, representing a weight of six-tenths, rose by 4.3%, while prices in the energy industry (electricity, gas, steam and air conditioning supply), with a weight of over one-third, rose by 10% compared to a year earlier.

Of the end-use groups of the producing branches of industry, prices in Hungary increased by 7.8% in energy and intermediate producing branches, by 4.4% in capital goods producing, and by 2.4% in consumer goods producing branches in December.

Industrial export prices went up by 3.9% compared to December of the previous year. Within this, prices rose by 3.5% in manufacturing (representing a weight of 96.4%) and – owing to significant price rises on the international electricity market – by 17% in the energy industry (carrying a weight of 3.4%).

In 2018 as a whole, industrial producer prices were 5.5% higher than in 2017. The rate of price rises was influenced over the year by wage growth, forint exchange rate changes and world petroleum market price trends, noted the KSH. Domestic output prices rose by 6.0% on average, within which manufacturing prices rose by 5.9% and prices in the energy industry by 6.6%.

Industrial producer prices for January 2019 will be published by the KSH on February 28.