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Hungary twelve-month consumer price rise slows to 4.0% in July

Hungarian consumer prices increased 4.0% in the twelve months to July, slowing from 5.3% in June, data published by the Central Statistical Office (KSH) on Wednesday show. Food prices fell on the month for the first time this year, tempering the monthly rise despite higher energy, fuel and services prices.

In a month-on-month comparison, consumer prices rose 0.1%, also slowing from 0.2% in June. A slowdown in twelve-month inflation was widely expected as the effect of a 5-percentage-point VAT increase in July 2009 fell out of the base period.

Analysts polled by business daily Napi Gazdasag estimated consumer prices rose 3.8% yr/yr in July.

Seasonally-adjusted core inflation stayed at 0.1% a month in July and twelve-month adjusted core inflation slowed sharply, from 3.5% in June 1.3%.

Excluding tax changes, July consumer prices rose 0.1% a month, just as the headline index did, and were up 3.3% in twelve months. The figures compare to 0.2%-a-month and 1.1% yr/yr tax-adjusted increase in June.

Calculated for European comparisons, prices were unchanged on the month and rose 3.6% yr/yr according to the harmonized index of consumer prices (HICP) in July. Both the monthly and the twelve-month figure were down from 0.2% and 5.0%, respectively, in June.

The price index of pensioneers, also calculated by KSH, showed a monthly price rise of 0.1%, in line with the headline index, and a twelve-month rise of 4.2%. Both increases were down from 0.4% and 4.7%, respectively, in June. Inflation in January-July averaged 5.4%, KSH said. Annual average inflation was 4.2% last year, down from 6.1% in 2008. (MTI-Econews)