Hungary inflation up annual 0.9 pc in January

Budapest, February 11 (MTI) – Consumer prices in Hungary rose by an annual 0.9 percent in January, the Central Statistical Office (KSH) said on Thursday.

The rate was level with that in December and under the 1.2 percent estimate by emerging market analysts in London.

Food prices rose by an annual 1.4 percent in January, though pork prices dropped by 17.2 percent as the result of a VAT rate cut on the product from 27 percent to 5 percent from the start of the year.

The price of alcohol and tobacco climbed by 3.5 percent, clothing prices edged up by 0.1 percent and consumer durable prices rose by 2.0 percent. Household energy prices inched down by 0.2 percent and prices in the category of goods that includes vehicle fuel dropped by 1.3 percent.

Harmonised for better comparison with other European Union member states, Hungary’s CPI was 1.1 percent.

Core inflation, which excludes volatile food and fuel prices, was 1.5 percent.

Calculating with a basket of goods and services used by pensioners, CPI was 1.2 percent.

In a month-on-month comparison, prices dropped by 0.1 percent in January. Food prices were up by 0.4 percent and alcohol and tobacco prices climbed by 0.9 percent. Clothing prices slipped 3.0 percent on post-holiday sales, but consumer durable prices edged up by 0.1 percent. Household energy prices were flat, prices in the category of goods that include vehicle fuel dropped by 1.6 percent and service prices increased by 0.3 percent.