BUDAPEST: Consumer prices in Hungary rose by an annual 0.2 percent in April, data released by the Central Statistical Office (KSH) on Tuesday show.
Emerging market analysts in London had put headline CPI around zero for April. Headline CPI went up after falling by 0.2 percent in March. In a month-on-month comparison, consumer prices climbed by 0.8 percent in April, accelerating from a 0.1 percent increase in March.
Fuel prices were the main factor behind both the annualised and month-on-month increase, said KSH department chief Borbala Minary. Food prices were driven up by dearer seasonal foods, she added. The annual decline of vehicle fuel prices decelerated to 10.8 percent in April from 16.7 percent in March. Food prices rose by an annual 0.9 percent, prices in the category of goods that includes vehicle fuel fell by 3.8 percent and household energy prices edged down by 0.1 percent.
Seasonally-adjusted core inflation, which excludes volatile fuel and food prices, was up by an annual 1.4 percent. Excluding the effect of tax changes, consumer prices rose by an annual 0.4 percent, KSH said. The economy ministry said low oil prices in international markets and negative inflation in Europe have had moderating effects on Hungary’s inflation. Gergely Suppán, analyst of Takarékbank, said that due to low fuel prices and basis effects inflation is expected to move around zero percent over the next months.
Sándor Jobbágy, analyst with CIB bank, projected annual CPI to remain around 0.5 percent on average in 2016.
