The higher-than-expected May inflation figure is the result of rising seasonal food prices, but is also a consequence of the earlier volatility of the forint's exchange rate, Finance Minster Péter Oszkó told journalists.
Twelve-month consumer prices rose 3.8% in May, the Central Statistical Office (KSH) said in the morning. The figure was well over the 3% rise estimated by analysts. Month-on-month, prices jumped 1.5%, largely on the back of higher seasonal food prices.
The government's crisis management programs and the firming of the forint will reduce the effect of exchange rate volatility on CPI, but the VAT rise on July 1 will raise inflation, Oszkó said.
The Finance Ministry is still not considering changing its 4.5% projection for average annual inflation, Oszkó said when asked by MTI. (MTI – Econews)