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Factory gate prices up 8.4% in July

Industrial producer prices as a whole were 8.4% higher in July 2018 than in the same month of the previous year. The change was basically due to wage growth, rising oil prices and the weakening of the forint, said the Central Statistical Office (KSH) in a first release of data on Friday.

Domestic output prices increased by 8.5% on average in July, year-on-year, within which the prices of manufacturing, representing a weight of six-tenths, rose by 9.2%, while the prices of the energy industry (electricity, gas, steam, and air conditioning supply), with a weight of over one-third, rose by 7.8% 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 5.6% in capital goods producing, and by 1.3% in consumer goods producing branches, said the KSH.

Industrial export prices rose by 8.4% compared to July of the previous year, within which prices were up by 7.8% in manufacturing (representing a weight of 96.4%), and by 20% in the energy industry (with a weight of 3.4%), owing to branch-specific market effects.

In January–July 2018, compared to January–July 2017, domestic industrial output prices increased by 5.0%, and export prices by 4.9%, so that industrial producer prices as a whole were 4.9% higher in the first seven months of the year.

Industrial producer prices for August 2018 will be published by the KSH on September 28.