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Underlying indicators remain below core inflation

Measures of underlying inflation of the National Bank of Hungary (MNB) rose slightly in September from the previous month, but remained "significantly below" the level of core inflation, the central bank said in a monthly assessment on Tuesday, as reported by state news agency MTI.

The prices of volatile items, such as food and energy, as well as those of demand-sensitive products, contributed nearly equally to the increase in prices in September, the MNB said. Householdsʼ inflation expectations "remained at moderate levels," it added.

The indicator for core inflation, excluding the effects of indirect taxes, rose to 2.6% in September, from 2.4% in the previous month.

The indicator for demand-sensitive inflation, which excludes processed foods from core inflation, climbed from 1.9% to 2.0%.

The indicator for sticky price inflation, which includes items for which retail prices vary, on average, no more than 15% a month, rose from 2.1% to 2.3%.

Hungaryʼs twelve-month CPI was 2.5% in September, slowing from 2.6% in the previous month, the Central Statistical Office (KSH) said earlier Tuesday. Core inflation accelerated from 2.8% to 2.9%.