Are you sure?

Industrial producer prices rise 7.1% yr/yr

Hungary's industrial producer prices rose 7.1% in the twelve months to November 2008, the Central Statistical Office (KSH) reported.

The increase slowed from 7.8% in October, which was the highest rate of 2008.

The rise in headline producer prices continued to be driven by a rising increase in the price of energy, which accelerated to 23.2% year-on-year (yr/yr) in November from 22.6% yr/yr in October, while producer prices for manufactured goods rose just 4.5% yr/yr in November, down from 5.4% in October.

Twelve-month forint-term export prices rose 4.4%, after a 3.8% rise in October. Domestic sales prices rose 10.8% yr/yr in November, down from a 13.2% increase in the previous month.

In a month-on-month comparison, industrial producer prices were practically unchanged in November, rising a mere 0.1%, after a m/m rise of 3.4% in October.

Forint-term export prices rose 1.1% from October, while domestic sales prices fell 1.3% in a month.

The increase in forint-term export prices fell far short of the rate of forint weakening. The forint lost 2.8% versus the euro and 7.8% against the dollar in November alone and weakened 4.2% to the euro and 20.3% to the dollar in twelve months.

Prices for major export sectors rose below the average. Export prices for electric equipment increased 3.1% yr/yr in November, though rose for the first time in the year. Vehicle export prices were up 2.6%, slightly accelerating from 2.4% in October. The twelve-month machinery export price increase of 3.3% was 1% point higher than in the preceding month. The export price for food, on the other hand, rose 12.6% yr/yr, though slowed from 15.5% in October.

Domestic producer prices for manufactured goods rose 4.9% yr/yr in November, far below the average 10.8% increase, as the headline price increase was driven by a 23.2% hike in energy prices, including water and heating. The domestic vehicle price increase of 6.6% in November was 1.1% point higher than a month earlier. Prices for capital goods rose just 0.9% yr/yr in November, while prices for consumer goods rose 3.9% as a result of a 2.1% rise in the cost of durable consumer goods and 4.3% increase in the cost of non-durable consumer goods. (MTI – Econews)