BUDAPEST: Statistical Office, prices rose 0.4 percent in December from the previous month and a year earlier, compared with prices in December were 2.2 percent higher. For the whole year, inflation remained modest, amounting to 0.1 per cent. Within the euro area accelerated to 1.1 percent price increase on preliminary data.
Rising raw material prices in foreign markets is raising the prices for both us and the euro area in general. They surged in December by almost a fifth over the last year and a half, and has reached the highest level. In addition, a rise in prices to pick up a low comparison base, as oil prices made the bottoms of the past year. This was due in December fuels 16 percent more expensive than a year ago. In contrast, the gas and district heating prices have not yet reached the higher world market prices, which is why they are compared to a year ago continues to be more favorable.
Food is in foreign markets since the middle of last year, progressively more expensive. This has the effect of milk and sugar, and oil products prices also rise, we turned. Somewhat more expensive commodities has amplified the impact of the depreciation of the euro.
Last year, the dynamics of the volatility of prices and to a large extent influenced by oil price developments. If the prices were lower in the first half due to a fall in oil prices, the rise in prices in the second half turned. For the whole year, however, the price increase was marginal, amounting to 0.1 per cent.
The December price increases accelerated to 2.2 percent in line with the Ministry of Finance summer economic forecast. Although oil prices were slightly higher compared to the assumptions of the forecast, this was compensated by the food and service, but somewhat more modest price increases. Earlier this year, continuing the acceleration of inflation increased raw material prices and the additional tax due.
