ADVERTISEMENT

MNBʼs underlying inflation indicators edge up, despite July CPI drop

Analysis

jessica fejos

Two indicators of "underlying inflation" edged up, while the third was unchanged in July from the previous month, although the drop in 12-month headline CPI steepened to 0.3%, data published by the National Bank of Hungary (MNB) today show, as reported by Hungarian news agency MTI.

The indicator for core inflation, excluding indirect tax effects, was 1.2% in July, after 1.1% in June. 

The indicator for demand-sensitive inflation, which excludes processed foods from core inflation, was 1.5%, unchanged now for the third month. 

The indicator for "sticky" price inflation, which includes items for which retail prices vary, on average, no more than 15% a month, was up at 1.8% from 1.7% in the previous two months.

Consumer prices were down 0.3% year-on-year in July after dropping 0.2% in both May and June, the Central Statistical Office (KSH) reported Tuesday morning. Seasonally-adjusted core inflation calculated by the KSH stood at 1.3% in July, up 0.1 of a percentage point compared to the previous month. The KSH said January-July consumer prices were up 0.1% year-on-year.

The indicators were hardly changed and continue to point to a subdued inflationary environment, the MNB said. Inflationary expectations have not changed and continue to be in line with low inflation processes, it added.

ADVERTISEMENT

Hungary's GDP growth hits 8.2% y.o.y. in Q1 Analysis

Hungary's GDP growth hits 8.2% y.o.y. in Q1

Parl't elects Orbán prime minister Parliament

Parl't elects Orbán prime minister

New managing director at LG Electronics Hungary Appointments

New managing director at LG Electronics Hungary

Hungary Grande Partenza 'exceeded all expectations' - gov't ... City

Hungary Grande Partenza 'exceeded all expectations' - gov't ...

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.