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Hungary producer price rise slows to 1.4% a month in June

Hungary's industrial producer prices rose 1.4% in June from the previous month, and increased 6.9% from one year earlier, the Central Statistics Office (KSH) said on Thursday.

The monthly rise was down from a sharp 3.8% in May, the fastest pace in more than two years. May prices were up 5.5% yr/yr.

Domestic producer prices rose 1.0% from May as the monthly rise slowed from 3.4% between April and May. June domestic sales prices rose 9.2% in twelve months, little changed from a twelve-month increase of 9.1% in May.

The monthly rise of forint-term export sales also slowed: to 1.8% in June from a sharp 4.1% in May, as the forint weakened less in June than in May. Export prices increased 4.7% in forint terms from June 2009 after rising 2.0% in the twelve months to May.

Reflecting yr/yr drops in the first four months, industrial producer prices were up just 0.9% in January-June from a year earlier. Domestic sales prices rose 4.4% yr/yr in the first six months and export prices fell 3.4% yr/yr despite twelve-month rises, reflecting the weakening of the forint, in May and June.

The forint weakened 1.8% to the euro in June over one month and 4.8% to the dollar after a monthly weakening of 4.1% and 11.2%, respectively, in May. Compared with June 2009, the forint weakened 0.2% to the euro and 15.0% to the dollar. In May, the forint yet was 2% firmer against the euro than a year earlier but weakened 6.3% against the dollar in the period.

Domestic sales prices in the manufacturing sector rose 0.9pc in June from the previous month. The biggest increases were registered in metallurgy and metal processing (3.5%), the chemical products and materials sector (2.8%) and coke production and crude oil processing (1.3%). Prices of textile and leather products fell 0.5%. Prices of food and pharmaceutical products were unchanged. Prices in the electricity and gas supply sectors rose 1.1%, while water supply prices remained almost unchanged.

In a twelve-month comparison, domestic sales prices in the manufacturing sector showed the biggest rises in the coke production and crude oil processing (23.2%) and the chemical products and materials sector (20.8%). Metal processing prices rose 11.6% and prices in the electric machinery sector increased 5.7%. Vehicle industry prices were up 2.9%.

The biggest price falls were recorded in the food industry (4.5%), the textile and leather industry (3.4%) and the wood processing, paper and printing sector (1.4%). Prices in the electricity and gas supply sector were up 12.9% and prices in the water treatment and supply sector rose 4.7% from one year earlier. (MTI-ECONEWS)