A real roller coaster, consumer prices up 3.0% yr/yr

Figures

Consumer prices rose 3.0% yr/yr in July and were up 0.2% from June, the Central Statistics Office (KSH) announced on Friday. Twelve-month inflation was up from 2.8% in June, but the monthly increase slowed from 0.3% in June. The twelve-month figure was slightly higher than analysts' consensus estimate of 2.9% in a poll by Dow Jones. Seasonally-adjusted core inflation, which excludes volatile fuel and food prices, was 0.5% compared to June and 1.9% compared to July 2005. In June, core inflation was 0.3% compared to May and 1.3% compared to twelve months earlier.

Twelve-month core inflation was lowest in January, measuring just 0.5% yr/yr, and it was 0.7%-0.8% yr/yr in the following three months. In May-July, core inflation rose in every month. Headline inflation in January-July averaged 2.6% yr/yr. Excluding tax changes, which included a five percentage point cut in the main VAT rate to 20%, effective January 1, 2006, consumer prices rose 0.2% from June and were up 4.8% from June 2005. According to the harmonized consumer price index (HICP), prices increased 0.2% from June and were up 3.2% from July 2005. Food prices fell 0.4% compared to June, in the first monthly decrease since last September. A marked 12.2% drop in seasonal food prices helped the fall from June. Excluding seasonal foods, food prices rose, however, by a sharp 1.7% from June, boosted by big increases in pork, poultry, bread and sugar prices. Clothing prices fell a sharp 2.1% in a month. Consumer durable prices fell by another 0.5%, despite a continued weakening of the forint. Household energy prices rose just 0.1% from June. The price of "other goods", which include vehicle fuel, rose 1.4% from June as fuel prices rose 4.9%. Prices of services also rose at an above average 0.7%, KSH said, noting that the price of recreational services rose 9.6% from June. Despite the monthly drop, July food prices were still up a sharp 6.4% in twelve months, with seasonal food prices up 29% from a year earlier, the price of sugar up 12.5%, egg prices up 11.5%, pork up 7.7% and milk up 6.8% in the period. The price of alcohol and tobacco rose 0.1% from June and 3.3% yr/yr.

Higher-than-average price rises were recorded in the group of "other goods", where prices rose 4.0% yr/yr, including a 12.3% increase in the price of vehicle fuel. The price of services continued to rise more than the average, at 3.7% from a year earlier. Among services, public transport prices were 9.2% dearer, rubbish pickup cost 5.9% more, sewage fees rose 5.4% and the price of recreational services rose 4.6%. Consumer durable prices fell 5.0%, clothing prices fell 0.9% and household energy prices were down 0.1% compared to July 2005. (MTI-Eco)

ADVERTISEMENT

Business confidence falls slightly in June Analysis

Business confidence falls slightly in June

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

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.