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MNB inflation indicators slightly up in August

Measures of underlying inflation of the National Bank of Hungary (MNB) slightly rose in August compared to the previous month, the central bank said in a monthly assessment on Friday, as reported by state news agency MTI.

In August 2017, annual inflation was 2.6%. Core inflation stood at 2.8%, while core inflation adjusted for the effects of indirect taxes was 2.4%. Headline inflation rose by 0.5 percentage points, core inflation by 0.2 percentage points, and adjusted core inflation by 0.1 percentage points relative to the previous month.

Higher inflation reflected an increase in the price index for fuel, mainly owing to a base effect. The increase in core inflation was mostly driven by rises in the prices of industrial goods due to a base effect, and in the price index for alcoholic beverages and tobacco. Higher tobacco prices primarily reflected the increase in excise duties from July 2017.

The MNBʼs measure of underlying inflation rose slightly on the previous month, standing at around 2.0%, which is still well below the core inflation figure.

The indicator for demand-sensitive inflation, which excludes processed foods from core inflation, was up from 1.7% to 1.9%, while the indicator for sticky price inflation, which includes items for which retail prices vary, on average, no more than 15% a month, rose from 2.0% to 2.1%.