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Industrial producer prices rise 7.8% yr/yr in October

  Hungary’s twelve-month industrial producer prices rose 7.8% in October, picking up from a 4.7% increase in September to the highest rate of 2008, the Central Statistics Office (KSH) reported on Friday.

 

Twelve-month forint-term export prices rose 3.8%, after a 1.3% decline in September. Twelve-month domestic sales prices rose 13.2% in October, up from a 12.8% increase in the previous month. In a month-on-month comparison, industrial producer prices were up 3.4% in October, picking up from a 1.2% increase in the previous month. Export prices jumped 5.1% in a month and domestic sales prices rose 1.2%. The forint weakened 7.2% against the euro and 15.4% versus the dollar. In the twelve-months to October, the forint softened 2.9% to the euro and 9.6% to the dollar.

Major export sectors, however, registered lower-than-average price increases as food export prices jumped 15.5% year-on-year (yr/yr) including the effect of a 5.0% hike in October alone. Export prices of electric equipment were still under the level of one year earlier despite a 3.8% increase month-on-month. Vehicle export prices rose 6.5% in a month, but were only 2.4% up from a year earlier. Machinery export prices rose 2.3% yr/yr and 4.4% in October alone.

Twelve-month domestic industrial sales prices were driven by a further acceleration in energy prices - including electricity, gas, heat and water supply - which rose 22.6% yr/yr. Domestic prices in the oil refinery sector were also 27.9% higher compared to October of last year, though fell 0.7% from September. Producer prices on the domestic market rose just 1.0% for machinery, 1.8% for electric equipment and 5.5% for vehicles.

Domestic producer prices for consumer goods were up 5.1% yr/yr as a result of a 1.7% price increase in the cost of durable consumer goods and a 5.7% price rise for non-durable consumer goods. Prices for capital goods remained level with the same month last year for the first time following a nine-month drop in twelve-month comparison. (MTI-Eco)