Factory gate prices up 7.5% in June
Industrial producer prices as a whole were 7.5% higher in June 2018 than in June 2017, the Central Statistical Office (KSH) reported. The change was essentially due to an 8% growth in minimum wages at the beginning of 2018, as well as to rising oil prices and the weakening of the Hungarian forint.
The June increase represents an acceleration from year-on-year rises of 2.7% in April and 5.3% in May, and is the fastest recorded in years, according to state news agency MTI.
In June 2018 compared to June 2017, domestic output prices rose by 7.3% on average, within which prices in manufacturing, representing a weight of six-tenths of the total, rose by 7.7%, while prices in the energy industry (electricity, gas, steam and air conditioning supply), with a weight of over one-third, were up by 7.0% compared to a year earlier.
Of the end-use groups of the producing branches of industry, prices in Hungary increased by 9.8% in energy and intermediate producing branches, by 4.7% in capital goods producing, and by 1.4% in consumer goods producing branches, KSH data show.
Industrial export output prices rose by 7.6% compared to June 2017, within which prices were up by 6.8% in manufacturing (representing a weight of 96.4%), and by 25% in energy (with a weight of 3.4%) due to branch-specific market effects.
Within the vehicle manufacturing segment, a key area for Hungary, producer prices were up 9.1% year-on-year.
In January–June 2018, compared to the first half of 2017, domestic and export output prices alike increased by 4.4%, so that industrial producer prices as a whole were 4.4% higher year-on-year.
Industrial producer prices for July 2018 will be published by the KSH on August 31.
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