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Analysts put August CPI at 3.4%

Analysts polled by business daily Napi Gazdaság estimate that year-on-year inflation rose to 3.4% in August from a record low of 3.1% in July due almost exclusively to base effects, adding that the fundamental processes are positive.

The Central Statistics Office (KSH) will publish August inflation data on Tuesday.

The analysts attributed the slightly higher figure to base effects as electricity prices fell in August 2010. However, the trend of falling food prices has continued, and fuel prices did not increase substantially either.

Zoltán Török of Raiffeisen Bank said clothing prices fell due to seasonal factors, while the prices of services could rise slightly, and the prices of consumer durables and energy are expected to remain unchanged.

Looking ahead, the tax on foods with high fat and high salt content and the November excise tax increases will not fully offset the continuing trend of falling food prices, Gergely Suppan of Takarékbank said. Suppan puts December twelve-month inflation at 3.3%.