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Hungary October PPI up 1.9% from Sep, up 7% yr/yr

Industrial producer prices in Hungary rose 1.9% in October from September and were up 7.0% in twelve months, figures published by the Central Statistics Office (KSH) on Wednesday show.

The sharp weakening of the forint that continued from September lifted forint-term export prices in the past two months although domestic producer prices also rose at a higher pace than earlier.

The monthly rise slowed from 3.3% in September when the pace of increase picked up from below 1% rises or drops in the previous ten months.

In a twelve-month comparison, the PPI increase accelerated steeply from 4.1% in September and slight drops in the preceding three months.

Domestic sales prices in October rose 1.3% from September, less than the 1.7% previous monthly rise in the previous month. After limited rises and a similar limited drop in June, the first above-1% monthly increase came in July. October domestic sales prices were up 7.5% yr/yr.

Forint-term export sales prices rose 2.2% in a month-on-month comparison in October, just half of the September pace which followed limited month-on-month increases or drops since November 2010. Export prices rose a steep 6.6% in the twelve months to October after a 2.9% increase in September. Export prices fell yr/yr each month between May and August.

Export prices rose in forint terms as the forint weakened 4.2% against the euro and weakened 4.8% against the US dollar in October from September. The forint was 8.0% weaker to the euro and was 9.6% weaker to the dollar than in October 2010.

January-October industrial producer prices were up 3.5% yr/yr as domestic sales prices rose 5.9% and forint-term export prices rose 1.8% in the period.