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Factory gate prices up 6.7% y-o-y in September

Industrial producer prices as a whole were 6.7% higher in September 2018 than in the same month of 2017, show monthly data from the Central Statistical Office (KSH) released Wednesday. The price change was basically due to wage growth, oil price rises and the weakening of the forint.

In a month-on-month comparison, industrial producer prices were up 0.1% as domestic prices rose 0.8% and export prices fell 0.3% from August to September.

Domestic output prices increased by 8.2% on average year-on-year in September, within which prices of manufacturing, representing a weight of six-tenths, rose by 7.8%, and prices of energy (electricity, gas, steam, and air conditioning supply), with a weight of over one-third, by 9.7% compared to a year earlier.

Of the end-use groups of the producing branches of industry, prices in Hungary increased by 11% in energy and intermediate producing, by 4.5% in capital goods producing, and by 1.4% in consumer goods producing branches.

Industrial export output prices rose by 6.0% compared to September 2017, within which prices were up by 5.2% in manufacturing (representing an overwhelming weight of 96.4%), and by 28% in the energy industry (with a weight of 3.4%), owing to branch-specific world market effects.

In January–September 2018, compared to the first three quarters of 2017, domestic output prices increased by 5.7% and export output prices by 5.4%, so that industrial producer prices as a whole were 5.5% higher year-on-year in the first nine months.

Industrial producer prices for October 2018 will be published on November 30.