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August CPI climbs by 15.6 percent

Consumer prices in Hungary rose by an annual 15.6 percent in August, up from a 13.7 percent increase in July, driven by higher food and consumer durable prices, the Central Statistical Office (KSH) said on Thursday.

The KSH data show food prices rose by 30.9 percent as the price of poultry climbed 40.4 percent, bread prices jumped 64.3 percent and milk prices increased by 54.7 percent.

The government rolled back prices for a number of staples, including pork, cooking oil and flour, to mid-October levels from February 1 in an effort to dampen inflation.

Prices of spirits and tobacco products increased by 13.1 percent. Clothing prices rose by 5.5 percent, consumer durables increased by 14.8 percent, household energy prices edged up 2.1 percent. Service prices increased by 7.7 percent.

Core inflation, which excludes volatile fuel and food prices, was 19.0 percent.

CPI calculated with a basket of goods and services used by pensioners was 15.7 percent.

Month on month, CPI was up 1.5 percent.

In a monthly analysis released after the publication of the KSH data, the National Bank of Hungary (NBH) said the rise in headline inflation was mainly driven by an increase in food prices, while core inflation climbed on processed food prices.

The NBH said repricing of market services was “significantly higher” than usual in the month of August in recent years and appeared across a “wide range” of services.

The NBH said indicators measuring households’ inflation expectations showed “unusually high volatility” and continued to rise compared to the previous month.

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