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CPI falls to 20.1 percent in June

Consumer prices in Hungary rose by an annual 20.1 percent in June, data released by the Central Statistical Office (KSH) on Friday show. The CPI fell for the fifth month in a row after peaking at 25.7 percent in January.

Food prices rose by 29.3 percent in June, decelerating from a 33.5 percent increase in the previous month. The price of bread was up by 48.6 percent, egg prices climbed by 40.1 percent and dairy products were 41.4 percent dearer.

The government earlier rolled back prices for a number of staples, including pork, cooking oil and flour, in an effort to dampen inflation. Those price caps are set to expire after August 1.

Household energy prices increased by 34.3 percent, lifted by consumption restrictions for regulated utilities prices in force from August 1. Gas prices rose by 43.0 percent and electricity prices climbed by 26.6 percent.

The data show consumer durable prices increased by 6.1 percent.

Prices in the category of goods that includes vehicle fuel rose by 18.1 percent. Motor fuel prices, which were capped for households until early December, increased by 20.2 percent.

Prices of spirits and tobacco products increased by 18.7 percent and clothing prices rose by 8.8 percent. Service prices increased by 14.4 percent, accelerating from a 14.3 percent rise in May.

In a month-on-month comparison, consumer prices edged up by 0.3 percent.

Commenting on the data, Economic Development Minister Marton Nagy said the government’s targeted measures were successful in reducing “sanctions-fuelled inflation” at a growing pace.

The rate of Hungary’s “sanctions-fuelled inflation” is down by one-fifth compared with its January peak, Nagy told MTI, adding that inflation was at its lowest since last September.

The mandatory discounts supermarkets must offer regularly on a number of food products since June are working and are effective in pushing inflation down, the minister said, noting that food price inflation in June was down 4.2 percent compared with the previous month.

Meanwhile, he said the online price-monitoring platform launched by the Competition Office and the government on July 1 has now drawn close to 350,000 visitors. The mandatory discounts will be increased from 10 percent to 15 percent from August, with the basic products whose prices had so far been regulated included in the scheme.

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