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Consumer price inflation 4.9% yr/yr in September

Twelve-month consumer price inflation was 4.9% in September after 5.0 % in August, the Central Statistical Office (KSH) said.

Consumer prices sank by 0.1 % in September from August following a 0.3% monthly decrease in the previous month.

The twelve-month figure is down from analysts' forecasts who put September twelve-month inflation at 5.2% in a survey carried out by the business daily Napi Gazdaság. Forecasts by City analysts varied between 4.9% and 5.3%.

Both monthly and twelve-month inflation were tempered by a below-average rise in food prices and by dropping vehicle fuel prices.

A 5-percentage-point rise in Hungary's main VAT rate to 25% from July 1 raised headline inflation less than expected due to poor demand. Twelve-month inflation was 3.7% before the VAT rise in June.

Excluding the effect of tax changes, consumer prices fell 0.2% from August and rose 1.1% yr/yr. In August, taxchange-adjusted prices fell 0.5% a month and rose 1.2% in one year.

Seasonally adjusted core inflation was 0.1% a month, down from 0.1% in August, and twelve-month core inflation stayed unchanged at 5.1%.

Calculated using the EU's harmonized consumer price index (HICP), Hungary's twelve-month CPI was 4.8% September, falling from 5.0% in August, and prices fell 0.2% a month after a 0.5% monthly decrease in August. (MTI-Econews)