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Hungary: Inflation higher than forecasts

Though expected at around 8%, the year-on-year inflation was 8.3% in August, as shown by the data of the Central Statistics Office (KSH) posted on Tuesday.

Consumer prices did not change against July. The first wave of the food price hike had already arrived, Erste Bank analyst Orsolya Nyeste explained the higher-than-expected inflation. First, the unprocessed, than the processed food products will feature higher and higher prices, said ING Bank analyst Dávid Németh. Neither of the experts expect a lower than 6% figure for the coming months, which contradicts the earlier prognoses by analysts.

Food prices grew 0.1% % month-on-month and 10.9% year-on-year, states the statistics office. The July-August increase is the result of the 9.9% drop in the price of seasonal foods (fruit and vegetables) and the average 1.5% hike with other foods. E.g. flour and eggs became 7.1 % and 6% more expensive. As to annual inflation, flour cost 33.2% and eggs 18.3% more than a year before. Poultry saw a 3.2% month-on-month and a 18.2% year-on-year price hike. (Gazdasági Rádió)