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Hungary CPI accelerates to 6.0% in August

Consumer prices in Hungary rose 6.0% year-on-year in August, accelerating from a 5.8% increase in July, the Central Statistics Office (KSH) said on Tuesday.

The twelve-month CPI reached its highest since a 6.4% rate measured in January 2010, boosted by vehicle prices and by the July excise duty rises. Food prices also rose above the average rate in twelve months, but fell 0.9% in a month.

Consumer prices 0.1% month-on-month in August after dropping 0.1% in July.

Analysts in London had put the year-on-year headline figure between 6.0% and 6.2%. Hungarian analysts had estimated August twelve-month consumer price inflation at between 5.8% and 6.0%.

January-August prices were up 5.7% from a year earlier. Consumer price inflation slowed to 3.9% last year from 4.9% in 2010.

Vehicle fuel prices were up 13.5% in one year, boosting the price rise of "other goods" to 7.9%, KSH said. Food prices were up 6.3% in twelve months, alcohol and tobacco prices rose 14.1%, boosted by excise duty rises, and household energy prices rose 6.2%. Consumer durable prices fell 0.8% and service prices were up just 4.1%.

Services prices rose, however, 0.3% in a month, boosted by recreation services. "Other goods" prices rose the most, by 1.6% as fuel prices were up 3.6% in a month. Alcohol and tobacco prices rose 0.5%.

Prices in all other main categories fell in a month-on-month comparison. Food prices fell 0.9% from July as seasonal foodstuff prices fell 7.3%. Seasonal sales pushed clothing, footwear prices 1.8% lower and household energy and consumer durables both became 0.2% cheaper.

Seasonally-adjusted core inflation, which excludes volatile food and fuel prices, slowed to 0.3% from 0.4% in a month in July and was unchanged at 5.1% yr/yr.

The harmonized consumer price index (HICP) used for EU comparisons was 0.1% a month and 6.0% yr/yr in August, as against minus 0.2% and 5.7%, respectively, in July.

Excluding the effects of tax changes, consumer prices rose 0.1% a month and 3.7% yr/yr in August after dropping 0.2% a month and rising 3.5% on the year in July.

Calculating with a consumer basket used for pensioners, prices were unchanged from July and up 6.1% yr/yr in August after a 0.1% monthly decrease and a 5.8% twelve-month rise.