Hungarian consumer price inflation dipped sharply in September due to base effects but were slightly ahead of analysts predictions, mainly because of high food prices, official data showed today.
The consumer price index (CPI) was up 0.7% in September over August and climbed 6.4% compared to a year earlier, according to data from Hungary’s Central Statistics Office (KSH). The yearly figure was down sharply from 8.3% growth recorded last month because of base effects caused by government austerity measures last year.
However, the figure was over market forecasts of around 6.0%, due to a higher-than-expected rise in food prices, caused partly by drought conditions in the summer. Food prices were up 2.2% in September over August, compared to a 0.1% rise the month before, and climbed 9.8% year-on-year. „The rise in food prices is the main factor that deviated from analysts’ forecasts,” said Borbála Mináry, a statistician at KSH.
„Prices in the whole (food) product group are rising slowly and gradually, producing a significant overall lift.” Inflation in the service sector was down 0.6% month-on-month, decreasing for the first time this year, while clothing grew 3.7% due to seasonal factors. Household energy was up 0.1% on the month but grew only 12.9% on the year compared to 31.0% last month because of the base effect of price rises last year. (fxstreet)