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Hungary producer prices up 1.3%

Hungary's industrial producer prices in December were up 0.1% from the preceding month and were up 1.3% from the same month of 2008 after rising 0.5% month-on-month and rising 0.3% year-on-year in November, the Central Statistics Office (KSH) said on Friday. Industrial prices rose 4.9% in 2009 after a 5.3% increase in 2008.

Industrial producer prices started to rise month-on-month in September after five months of decline, mirroring the development of forint-term export prices, which, in turn, moved more or less parallel with changes in the forint's exchange rate.

Domestic industrial sales prices in December were unchanged from the preceding month and were up 0.7% from December 2008. In a clear recession sign, domestic sales fell on the month between last March and October except for a 09.% rise in June and no-change in September, before rising 0.5% a month in November.

In a twelve-month comparison, domestic sales prices increased for the first time in December after yr/yr decreases registered each month between July and November 2009.

December forint-term exports prices were up 0.2% from November as their rise slowed from a 0.5% increase in November. In a monthly comparison, forint-term export prices fell each month between April and August as the forint strengthened from its lows reached last March, and has risen since September when the forint weakened. The link with the exchange rate was looser, however, in the last four months, as the export prices kept rising in October when the forint actually strengthened.In forint terms, Hungarian export prices in December were up 1.7% yr/yr, after a 1.2% twelve-month increase in November. Yr/yr increases slowed from close to 10% to below 2% on a base effect in October.

For the whole of 2009, forint-term export prices rose 7.4% after a 0.6% increase in 2008 while domestic industrial sales prices rose 1.3% after a 11.6% rise in 2008. The forint lost 0.8% to the euro and weakened 2.8% against the dollar from November to December, weakening 3.4% to the euro and strengthening 5.1% against the dollar in one year.

Last year the forint on average was 1.1% weaker to the euro and lost 1.5% against the US dollar compared to the 2008 average exchange rate. (MTI-ECONEWS)