MNB: Key inflation indicators climb over 12%

MNB

The National Bank of Hungary (MNB) said the increase in headline inflation was mainly driven by higher prices for core inflation items but acknowledged that vehicle fuel prices contributed 1.2 percentage points to CPI in a monthly analysis released on its website after the publication of the KSH data.

The MNB's measure of core inflation excluding indirect tax effects, a bellwether indicator of underlying inflation, rose to 12.2% in May from 10.3% in the previous month.

The central bank's indicator for demand-sensitive inflation, which excludes processed foods from core inflation, increased to 9.9% from 8.8%.

The indicator for sticky price inflation, which includes items for which retail prices vary, on average, no more than 15% a month, climbed to 11% from 10%.

The MNB said the indicators measuring households' inflation expectations "showed unusually high volatility," remaining "basically unchanged" in May but standing over the central bank target range.

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