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Hungary’s twelve-month PPI slows to 4.6% in Aug

Hungary's twelve-month industrial producer price index rose 4.6% in August slowing from a 6.0% increase in July, the Central Statistical Office (KSH) said.

Twelve-month PPI peaked at 9.1% in March and slowed to 6.2% in May before picking up to 6.6% in June again.

Twelve-month forint-term export prices rose 8.4% in August, slowing from a 10.4% increase July. Domestic sale prices fell 0.9% in August after inching down 0.4% in July.

In a month-on-month comparison, industrial producer prices dropped 0.5% in August after a 1.5% fall in July. Forint-term export prices decreased 0.7% and domestic sales prices eased by 0.2%. Only the refinery, chemicals, vehicle and energy sectors registered higher export prices in August than in July.

The month-on-month change in forint-term export prices reflects the effect of the forint's 0.9% and 2.2% strengthening against the euro and the dollar, respectively. Compared to twelve months earlier, the forint weakened 14.3% against the euro and 20.1% against the dollar.

Twelve-month producer price growth in the manufacturing segment slowed to 5.6% in August from 7.6% in June and to 1.3% from 1.8% in the energy sector.

Vehicle producer prices were up 10.2% from a year earlier because of a 10.7% rise in forint-term export prices and a 6.0% rise in domestic prices. A 12.3% export price increase for electric equipment, as well as a moderate 3.0% price rise on the domestic market, pushed producer prices up 11.3%. As the result of 8.5% higher export prices and a 1.1% increase in domestic prices, the IT and electronic manufacturing sector registered an 8.0 producer price increase. Export prices in the pharmaceutical and rubber sector also rose more than average, picking up 9.7% and 10.2%, respectively. As opposed to the overall price decrease, domestic producer prices in these sectors rose 0.9% and 3.1% in August.

Twelve-month food prices rose 3.3% for export markets but were flat for the domestic market, resulting in a slight 0.8% rise in food producer prices.

Domestic producer prices for capital goods were up 3.0%, while prices for consumer goods rose 1.3% as prices for durable and non-durable consumer goods rose about the same. (MTI – Econews)